Road ministry looks for additional Rs 8800 cr

Q: Apart from record Rs 82000 crore presumed earlier as public funds for construction and maintenance of highways in the current financial year, the road ministry has asked for an additional Rs 8800 crore as budgetary support.

Lewin G,

14th September 2015

Real estate News in Mumbai

real estate

road ministry

highway projects

public funds for construction

construction and maintenance of highways

road transport and highways secretary

Follow Discussion

Also see discussions for

Mumbai Real estate News Real estate News in Mumbai

Replies (3)

This is really recommendable Mani,
Of the road ministry's demand for additional budget expenses, Rs 2620 crore is for awarding contracts for building additional national highways, which has been targeted at around 10000 km this financial year, and Rs 1510 crore for special speed up road development programme for the North-East.

Abhinandsavalla, Mumbai

14th September 2015

Comment

@Abhi,
It also have the intention to increase the non-Plan expenses for maintenance and repair of national highways by Rs 1000 crore from the Budget Estimate to Rs 3700 crore.

Varun,

14th September 2015

Right Supratim!!!
I think the additional funds request was just indicative of the requirements of the ministry, which would certainly be higher when the final estimate is prepared later this month. The ministry's move is as per PM Narendra Modi's advice that funds should be desire sufficiently in advance so that projects don't suffer due to their scarcity as in the past.

Varun,

14th September 2015

Comment

No doubt, construction has gathered momentum in recent months. I have read that about 2000 km of highways have been built in April-August 2015, compared with about 1700 km in the whole of last financial Year.

With an exceptional 11500 km of highway projects awarded since the start of last financial year, the construction is confined to speed up further in the coming months.

Manilal Patel, Mumbai

14th September 2015

In spite of the fact that a large segment of the new awards would be under the conventional engineering, procurement and construction (EPC) model, the public private partnership (PPP) segment is also looking up thanks to right-sizing of projects, the policy that four-fifths of the required land will be in the government's possession before Public Private Partnership projects are awarded and the hybrid model which reduces the risks borne by the private developer.

Varun,

14th September 2015

Right Varun,
It is also seen that with improvement of investor interest in the sector, banks are also being raised to step up advances to developers of highway projects.

According to the road ministry, over 4100 Km of national and state highways projects have already been awarded till the end of August this year out of the targeted 10000 Km for the current financial year. The pace of construction now is 13.3 Km per day.

Manilal Patel, Mumbai

14th September 2015

Yes, it is heard that road transport and highways secretary Vijay Chhibber wrote to finance secretary Ratan P Watal recently for an additional Rs.8800 crore as budgetary support, was in keeping with their preparedness, committed liabilities and the progress of works.

Varun,

14th September 2015

Comment

Hi Varun,
Of the current Budget estimate of Rs.45518 crore for support to the road ministry, some Rs.42000 crore is for construction and maintenance of highways, including around R39850 crore for the national highways. An additional R40000 crore is being organized through tax exempt bonds.

Supratim,

14th September 2015