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NHAI creates National Highways Investment Promotion Cell

The government has set an ambitious target of constructing 35,000 km of National Highways in the next five years

BS Reporter  |  New Delhi 

road construction

The Authority of India has created a Investment Promotion Cell (NHIPC) for attracting domestic and foreign investment for highways projects.

The cell will focus on engaging with global institution investors, construction companies, developers and fund managers for building investor participation in road infrastructure projects.

The government has set an ambitious target of constructing 35,000 km of in the next five years involving an investment of Rs 5.35 crore under Bharatmala Pariyojana. In October, the Union Cabinet cleared the Bharatmala project to construct 20,000 km of highways connecting western and eastern parts of the country at an estimated investment of Rs 7 lakh crore.

In the first phase to be undertaken over three-five years, the project would cost Rs 5.5 lakh crore.

The project would be funded through various sources, including Rs 2.09 lakh crore from the market, Rs 1.06 lakh crore through private investment and Rs 2.19 lakh crore from the central road fund or toll collection.

The roads that would be built under Bharatmala will include state highways, and some state roads across the country. "Every state will get proportional projects under the scheme," the official added.

Bharatmala is the largest highways project after the National Highway Development Programme (NHDP) which saw the development of about 50,000 km, and aims at improving connectivity in border and other areas.

The primary focus of NHIPC will be to promote foreign and domestic investment in road infrastructure. The NHIPC will be working in close co-ordination with various connected Ministries and Departments of Government of India, State Governments, Apex Business Chambers like CII, FICCI, ASSOCHAM, and Invest India etc. NHIPC will also work in close co-ordination with Foreign Embassies and Missions in India and Indian Embassies and Missions situated in foreign countries.

First Published: Thu, December 21 2017. 17:46 IST