Par panel asks govt to expedite fund raising for road projs

A parliamentary panel has asked the road ministry to expedite fund raising for road projects while expressing apprehensions that many of the projects targeted during the current financial year may remain incomplete due to shortage of financing.
"The Committee is still not convinced with the reply of the Ministry regarding funds generation for road projects. Six months of current financial year i.E. 2016-17 have lapsed and the ministry is still engaged in talks with LIC/EPFO for issuing bonds etc," said a report by Parliamentary Standing Committee on Transport, Tourism and Culture.
"The Committee further recommends to expedite the process of funds generation for road projects other-wise many of the projects targeted during the current financial year will remain incomplete," the report said.

The Ministry has set a high target of constructing 10,000 km road in the year 2016-17.
NHAI intend to raise funds amounting to Rs 5,000 crore via EC Capital Gain Exemption Bonds and Rs 50,000 crore through taxable bonds and other instruments, if required, the report said.
"NHAI will prefer to raise funds from LIC and EPFO etc. In case tax free bonds is allowed by the government to NHAI in 2016-17, the amount to be raised from LIC/EPFO will reduce to that extent," it said.

As per Union Budget 2016-17, an allocation of Rs 78,932 crore has been made for National Highways Development Project (NHDP) and projects with NHAI.

"NHAI has projected its resource gap and to bridge it, NHAI's borrowing amounting to Rs 59,279 crore has been estimated under the Head IEBR in the Union Budget 2016-17," it said.
In 2015-16 NHAI has raised Rs 23,281.7 crore against the Revised Estimates of IEBR of Rs 28,000 crore, it comes to 83.14 per cent of total requirement.
NHAI is engaged in talks with LIC/EPFO etc to raise Rs 50,000 crore and Rs 5,000 crore through 54 EC bonds.