To fund road construction, NHAI raises Rs 102,000 million
ROADS & HIGHWAYS

To fund road construction, NHAI raises Rs 102,000 million

The Indian National Highway Authority (NHAI) raised more than 102,000 million according to the Economic Survey 2022-23. Indian and foreign institutional investors will play an important part in order to meet the ever-increasing budgetary support for constructing a nationwide road network. According to the Survey, the industry has seen an increase in the construction of national highways (NHs) and roads over time. In FY22, 10,457 km of roads were built, compared to 6,061 km in FY16. 4,060 kilometers of NHs and roads were constructed in FY23 (through October 2022), which represented approximately 91% of the achievement during the comparable period of the previous fiscal year. In the last four years, total budgetary support for sector investment has increased rapidly to approximately 1400 billion by the end of FY23 (on October 31, 2022)," the survey stated.

The government's funding for the construction of national highways has seen a significant decadal CAGR of 26 per cent from180,000 million in FY13 to 190,000 million anticipated for FY23BE. The NHAI has met approximately 90 per cent of its annual capex goal of 134,0000 million by December 2022 according to ICICI Securities.

The road ministry has constructed 5,337 kilometers of national highways (NHs) as of December 29, 2022, compared to the target of 12,200 kilometers for FY23. This results in a construction rate of approximately 34 kilometers per day for FY23. In FY15, the rate of highway construction was 12 km per day, whereas in FY22, it was 29 km per day with 10,457 km built annually. It's possible that raising money came about as a result of the government's plan to make assets in the public sector marketable. According to the statement, the National Highways Authority of India (NHAI) launched "InvIT" in the fiscal year 2022 to not only facilitate the monetisation of roads but also to attract institutional investors from both India and abroad to invest in the roads sector.

According to the survey, structural and financial reforms like the creation of Dedicated Financing Institutions (NaBFID), recapitalisation of other sectoral DFIs, the push to the PPP ecosystem through Model Concession Agreements by line ministries, and enabling social infrastructure development through the revamped Viability Gap Funding scheme complement the programmatic approach to infrastructure.

The Indian National Highway Authority (NHAI) raised more than 102,000 million according to the Economic Survey 2022-23. Indian and foreign institutional investors will play an important part in order to meet the ever-increasing budgetary support for constructing a nationwide road network. According to the Survey, the industry has seen an increase in the construction of national highways (NHs) and roads over time. In FY22, 10,457 km of roads were built, compared to 6,061 km in FY16. 4,060 kilometers of NHs and roads were constructed in FY23 (through October 2022), which represented approximately 91% of the achievement during the comparable period of the previous fiscal year. In the last four years, total budgetary support for sector investment has increased rapidly to approximately 1400 billion by the end of FY23 (on October 31, 2022), the survey stated. The government's funding for the construction of national highways has seen a significant decadal CAGR of 26 per cent from180,000 million in FY13 to 190,000 million anticipated for FY23BE. The NHAI has met approximately 90 per cent of its annual capex goal of 134,0000 million by December 2022 according to ICICI Securities. The road ministry has constructed 5,337 kilometers of national highways (NHs) as of December 29, 2022, compared to the target of 12,200 kilometers for FY23. This results in a construction rate of approximately 34 kilometers per day for FY23. In FY15, the rate of highway construction was 12 km per day, whereas in FY22, it was 29 km per day with 10,457 km built annually. It's possible that raising money came about as a result of the government's plan to make assets in the public sector marketable. According to the statement, the National Highways Authority of India (NHAI) launched InvIT in the fiscal year 2022 to not only facilitate the monetisation of roads but also to attract institutional investors from both India and abroad to invest in the roads sector. According to the survey, structural and financial reforms like the creation of Dedicated Financing Institutions (NaBFID), recapitalisation of other sectoral DFIs, the push to the PPP ecosystem through Model Concession Agreements by line ministries, and enabling social infrastructure development through the revamped Viability Gap Funding scheme complement the programmatic approach to infrastructure.

Next Story
Infrastructure Transport

Kolkata Conducts Successful Trial Run on Noapara-Airport Metro Route

Kolkata’s metro network is set for a major expansion as the first trial run on the Noapara-Airport Metro route was successfully conducted on January 25, 2025. Covering a 7.04 km stretch of the Yellow Line, this trial marks a significant step toward the route’s full operational launch, expected by mid-2025. The new metro extension will connect Noapara to Jai Hind Biman Bandar (Kolkata Airport), easing travel for thousands of daily commuters. The trial run, which began at Noapara at 12:09 PM, made stops at Dum Dum Cantonment and Jessore Road before reaching the airport station at 12:31 PM. T..

Next Story
Infrastructure Transport

BBMP Invites DPR Bids for KR Tunnel and 10 Elevated Corridors

The Bruhat Bengaluru Mahanagara Palike (BBMP) has invited bids for the preparation of a Detailed Project Report (DPR) for a second tunnel road between KR Puram and Nayandahalli, spanning 28 km. This move comes amid ongoing criticism from environmentalists, urban mobility experts, and civic groups against the proposed 18 km twin-tube tunnel road from Hebbal to Silk Board. The new tunnel road is proposed along a route already served by the Purple Line of Bengaluru Metro (Whitefield-Challaghatta via KR Puram and Nayandahalli). Additionally, BBMP has sought DPR bids for multiple elevated corr..

Next Story
Infrastructure Urban

Tyre Industry Seeks Ban on Scrap Tyre Imports Amid Surge

The Automotive Tyre Manufacturers Association (ATMA) has urged the government to impose an immediate ban on waste tyre imports, citing a more than fivefold increase since FY21 and growing environmental concerns. According to Ministry of Commerce data, imports of waste and scrap tyres have surged from 264,000 metric tonnes in FY21 to 1.398 million metric tonnes in FY24. In its pre-budget submission, ATMA Chairman Arnab Banerjee highlighted that the rising imports contradict India's Extended Producers Responsibility (EPR) Regulation on Waste Tyres, implemented in July 2022. The regulation i..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000