Government to approach capital market to raise funds for four road projects

Road Transport Minister Nitin Gadkari said on Tuesday that the government would approach the capital market in September to raise funds for four road projects. Nitin Gadkari said the money will be raised through Infrastructure Investment Trusts (InvITs). The Union Minister has stated that there will be an investment limit of 10 lakh for retail investors.

Addressing an FICCI event, Nitin Gadkari said, “We will approach the capital market to raise funds for the four road projects…there will be a guaranteed return of 7-8 percent.”

Infrastructure Investment Trusts (InvIT) are mutual fund-like instruments designed to pool investors’ money and invest in assets that will provide cash flows over a period of time.

Nitin Gadkari said the Ministry of Roads will also re-open projects under the build and transfer operate (BOT) model. He said he has set a target to increase the length of the national highway network to 2 lakh km by 2024. At the end of November 2021, the total length of national highways in India increased from almost 91,287 km in April 2014 at approximately 1,40,937 km. km.

Nitin Gadkari reiterated his goal of replacing the use of petrol and diesel with alternative fuels.

(With PTI inputs)

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