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govt task force pegs road sector capex at 20.33 lakh cr by 2025

Highway

new Delhi. A government committee set up for infrastructure development plans has emphasized the need for more private investment in highways. The committee says that projects worth Rs 20.33 lakh crore may be required in the road sector in the next five years. The Task Force was constituted by the Finance Ministry under the chairmanship of Economic Affairs Secretary Atanu Chakraborty to prepare a blueprint for the National Infrastructure Pipeline (NIP). The task force made these suggestions in the final report submitted to Finance Minister Nirmala Sitharaman on Wednesday.

The task force has estimated a total investment of Rs 111 lakh crore in all infrastructure projects in the country by FY 2024-25. It has said that 18 percent of the total investment targeted will be in the road sector alone. The report states that about 18 percent of the total investment of Rs 111 lakh crore targeted from 2020 to 2025 is estimated to come in the road sector. Most of this can be invested in increasing road length and safety features.

The task force said that given the ambitious target, increased private sector participation is important. The task force credited the Ministry of Road Transport and Highways with comparatively low-risk models for the private sector such as engineering procurement and construction (EPC) and hybrid annuity model (HAM). It said that this could double the rate of construction of national highways from 2015 onwards. The total capital expenditure estimated by the central government for these projects is more than Rs 13.8 lakh crore. These projects include construction of new expressways like Delhi-Mumbai Expressway, Bengaluru-Chennai Expressway. The Delhi-Mumbai Expressway is a 1,320-km new expressway project, which will be built in 40 packages under the EPC model at an estimated total cost of Rs 90,000 crore. The National Highways Authority of India (NHAI) has awarded contracts for 19 packages with an estimated cost of Rs 24,097 crore till 31 October 2019.

This post was published on May 1, 2020 7:24 pm

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