Government Can Mobilise ₹8 Lakh Crore Annually for Road Projects, Says Nitin Gadkari
Mumbai, March 24: Union Minister for Road Transport and Highways Nitin Gadkari on Tuesday highlighted the government’s capacity to mobilise up to ₹8 lakh crore annually for road infrastructure, while raising concerns over the slow pace of spending in the highways sector.Speaking at the listing ceremony of the NHAI-sponsored Raajmarg Infra Investment Trust at the BSE, Gadkari underscored the importance of accelerating execution to fully realise the sector’s economic potential.
Slow Spending a Key Challenge in Highway Development
Gadkari pointed out that despite strong funding capabilities, the primary issue lies in execution."Our problem is that we are unable to spend effectively. Our spending rate is too slow," he said.
He emphasised the socio-economic significance of highway construction, noting that infrastructure investment has a strong multiplier effect. According to the minister, every Re 1 spent on infrastructure generates Rs 3 worth of economic activity.
Strong Funding Pipeline Backed by Market and Budget Support
The government can mobilise substantial resources through a combination of market borrowings and budgetary allocations. Gadkari stated that up to ₹5 lakh crore can be raised annually from the market, supplemented by ₹3.2 lakh crore in budgetary support, driven by the robust asset profile of the highways sector.Infrastructure Projects Driving Economic Growth
Highlighting the broader economic impact of infrastructure development, Gadkari cited the Dwarka Expressway project near Delhi. The stretch, once a forest area, has attracted over ₹8 lakh crore in real estate investments, demonstrating the transformative effect of highway development.Major Projects in Pipeline Across Key Regions
The minister announced that groundwork for projects worth up to ₹40,000 crore in and around Pune will begin within the next two weeks. These include the Pune-Aurangabad Expressway and four additional projects.He also outlined plans for a new Mumbai-Bengaluru express highway, which is expected to reduce travel time between the two cities to five hours.
Mumbai-Goa Highway Near Completion Amid Delays
Addressing the progress of the Mumbai-Goa National Highway, Gadkari said the project has faced delays primarily due to land acquisition challenges since its start in 2010.He noted that 93 percent of the work has been completed, with full completion expected within the next two months. The minister is scheduled to inspect the project on April 10.
Gadkari added that the ministry ensures substantial land acquisition is completed before initiating construction to avoid future delays.
Construction Pace Slows, Target Raised to 60 Km Per Day
The pace of highway construction has slowed to 32 to 34 km per day, down from the earlier 40 km per day. However, the ministry is aiming to scale this up to 60 km per day.Push for Technology-Driven Toll Systems
The government is also advancing toll infrastructure modernisation. Gadkari said plans are underway to convert all 900 toll plazas into multi-lane free-flow systems by the end of the year, with 105 tenders to be issued soon.He added that the adoption of technology at toll plazas is already generating savings of over ₹8,000 crore annually by reducing operational costs.
Low Complaints on Road Quality
On construction quality, Gadkari stated that complaints remain minimal, attributing this to increased accountability placed on contractors.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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