After simplifying procedures for building highways, Finance Minister Arun Jaitley has said that the government would award 10,000 km of road projects by the end of fiscal. The Finance Minister also said that the government has managed to address the stress in the highways sector and road contracts are now attracting multiple bids. He further added that the government has induced a lot of liquidity in the sector and the banks have started supporting the sector.
So far in the current financial year Jaitley said that the government has already awarded 6,800 km of road contracts and added that it has a spiral effect on steel, cement, auto sector, and all is going to take place. Jaitley said that a number of contractors have started repaying old debts.
Recently, the government has approved hybrid annuity model for building roads which combines elements of government funding and private development to ensure greater investor interest. The main objective of the approval is to revive highway projects in the country by making one more mode of delivery of highway projects.