Union Road Transport and Highways Minister Nitin Gadkari has said that the government will approach the capital market this month to raise funds for road projects. Last month itself, the Union Minister informed that the government would raise capital for 4 projects. At that time, Gadkari had said that a 7 to 8 percent return would be ensured to the investors on the money invested. Sadak is currently working on several ambitious road projects. To complete these projects on time, the government wants to ensure the availability of funds, for which all options are being worked out. According to the Union Minister, road projects are very effective, so they will not face any problem in raising funds from the market.
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Toll revenue will soon cross one lakh crore rupees
He said at an event here on Thursday that the toll revenue of the National Highways Authority of India (NHAI) will increase from Rs 40,000 crore annually to Rs 1.40 lakh crore in the next three years. “This month, I will approach the capital market to raise funds for road projects. Our income from toll is very good and the rating of NHAI is AAA. I am 100% sure that we will get a good response from the capital market. Gadkari said insurance and pension funds have shown interest in investing in India’s road projects as these projects are economically viable. He had said last month that the money would be raised through Infrastructure Investment Trusts (InvITs) and there would be an investment limit of Rs 10 lakh for retail investors.
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What are Invites
InvITs i.e. Infrastructure Investment Trust is like mutual fund. However, the funds raised in this are used for infra projects. Through this, investors can earn a small part of the income in the form of returns by investing small amounts directly in infrastructure. invites were started so that projects do not face any shortage of funds and they can get another option to raise money.
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