Road Ministry chalks out Rs 7 trillion infra projects plan over 2-3 years

The Ministry of Road Transport and Highways of India (MoRTH) has planned investment worth Rs 7 trillion for infrastructure projects to be spent over the next 2-3 years.

The investment opportunities are across multiple asset classes such as highways, multimodal logistics parks, wayside amenities, ropeways and warehousing zones among others.

Speaking at the National Conference on Investment Opportunities in Highway, Transport, and Logistics, here in Mumbai, Union Minister Nitin Gadkari told investors not to worry about returns on investments in infrastructure projects or them getting stalled.

Of total investment planned in infrastructure, the 34,800 km highways have the highest capital cost of Rs 10 trillion followed by a Rs 50,000 crore investment plan towards 35 multimodal logistics parks spread across the country.

In the highways segment, about Rs 6 trillion would be invested by FY24, said the ministry in its presentation.

In a bid to seek large investor participation not restricted to foreign or domestic investors, Gadkari said that investment opportunity could be extended to the retail segment where interests offered could be 2-3 percent higher than bank offering with monthly payouts to make it lucrative.

He also pointed out that the planned infrastructure project along with multimodal logistics parks would ensure drop in logistics cost from current 14 per cent to about 9 per cent, in line with what China is currently offering between 8-10 per cent.

Alongside, Gadkari also suggested that this planned national project should also be integrated with water transportation for more effective drop in logistics cost.

Chairperson, NHAI, Alka Upadhyaya informed that NHAI is developing multiple facilities and allied infrastructure, in line with the Prime Minister’s vision for promotion of integrated infrastructure under PM Gati Shakti National Plan.

“The new thrust is on development of allied highway initiatives like multi modal logistics parks, last-mile connectivity through ropeway projects, fibre cables and other infrastructure along National Highways. Almost 8,400 state-of-the-art greenfield expressways are being built as part of Bharat Mala Pariyojana. These corridors will change the face of National Highways infrastructure and also supercharge the economy to a 5 trillion-dollar economy” she said.

Gadkari informed that the Ministry is also working on preparing an advisory on flex engine—to allow enthanol as well as petrol usage as fuel in vehicles.

“I will be making a presentation to the Petroleum Ministry to show that there is a technology that exists which will bring the calorific value of ethanol and petrol to the same level. This will ensure reduction in pollution apart from being economical,” said Gadkari.

Ethanol can be derived from sugarcane as well as rice. Switching to ethanol will reduce dependency on fuel imports.

The Minister said the automobile industry in India which is worth Rs 7.5 lakh crore in size will double to Rs 15 lakh crores in next 5 years.  

He also stressed upon alternative fuels like ethanol and asked Maharashtra Transport Department to launch ethanol-driven auto rickshaws in Pune, which already has three ethanol dispensing stations.

“Encouragement to alternative fuels will ultimately help the scrapping industry as well”, the Minister added.