In order to ensure that National Highways Authority of India (NHAI) has no shortage of funds to undertake expansion of highways and building new expressways, Road transport ministry has given its approval for the agency’s plan to raise up to Rs 55,000 crore during the current fiscal year.
Further, the ministry has also proposed for allowing the NHAI to keep the proceeds of completed highway projects that will be sold out for a healthier balance sheet. This will help NHAI to raise more funds on its own rather than continuing to depend on more budgetary support. Earlier proposal was to transfer entire proceeds to Consolidated Fund of India. But in that case NHAI has to depend on the budgetary support.
The ministry has prepared a list of 75 completed projects that can be sold to private players for about 15 years under a new model named Toll-Operate-Transfer. Ministry expects to generate at least Rs 40,000-Rs 50,000 crore upfront revenue from selling of these projects. Currently, these stretches annually generate Rs 4, 400 crore toll revenue.