Government to approach capital market this month to raise funds for road projects

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Union Minister Nitin Gadkari said on Thursday that the government would approach the capital market this month to raise funds for road projects.

Addressing an event here, he said NHAI’s toll revenue would rise to Rs 1.40 lakh crore per year over the next three years from Rs 40,000 crore per year currently.

”This month, I will approach the capital market to raise funds for road projects…Our toll revenue is very good and NHAI’s rating is AAA…I am 100% sure that we will have a good response from the capital market,” said the Minister of Road Transport and Highways.

Gadkari said insurance funds, pension funds have shown interest in investing in India’s road projects because there is economic viability.

Last month, he said the money would be raised through Infrastructure Investment Trusts (InvITs) and there would be an investment limit of Rs 10 lakh for retail investors.

The minister had also said that the government would soon list InvIT on the stock exchange so that retail investors could trade units of InvIT.

InvITs are mutual fund-like instruments designed to pool investors’ money and invest in assets that will provide cash flow for a period of time.

Gadkari pointed out that the transport sector is responsible for 13.5% of India’s carbon emissions, of which road transport’s share is 90%.

“We must discourage the use of personal vehicles and promote the maximum use of public transport modes,” he stressed.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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