Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 3.5
Article rating: 5.0
Article rating: No rating
Article rating: 4.0
Article rating: No rating
Article rating: No rating
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 5.0


Rs 300,000 cr road sector loans saved from turning NPAs: Gadkari

Author: IANS/Tuesday, September 19, 2017/Categories: Infrastructure

Rs 300,000 cr road sector loans saved from turning NPAs: Gadkari

Mumbai - The National Democratic Alliance (NDA) government has managed to save bank loans worth Rs 300,000 crore to the road sector from turning into non-performing assets (NPAs), Union Minister for Road Transport, Highways and Shipping Nitin Gadkari said.

He said 403 road projects involving Rs 300,000 crore were stalled when the NDA assumed power at the Centre in 2014.

"The government managed to revive most of these projects, thus saving Rs 300,000-crore (loans) from turning into stressed assets. The government terminated projects worth Rs 500,000 crore to set an example for those delaying projects. Currently, there is not a single stalled project," Gadkari claimed.

He emphasised that all the bottlenecks pertaining to land aquisitions, environment and forest clearances, and other bureaucratic hurdles had been removed and called for private investment in this sector.

Addressing the annual convention of Indo-American Chamber of Commerce, the apex body promoting bilateral ties and fostering economic engagement between India and the USA, Gadkari lamented banking support for funding road projects and delays in financial closures and said his ministry would explore newer funding avenues.

In this regard, he revealed that a proposal for the National Highways Authority of India (NHAI) going public to raise funds was under process, though he did not give any further details.

"There are no constraints in raising funds. We are capable of generating resources through innovative ways, such as taking NHAI to public. Such a move will help the infrastructure projects source resources from the capital markets," Gadkari said.

He pointed out that the government was looking not only for investments but also innovative technologies from investors, adding that US companies could bring efficient and cost-effective technologies.

Gadkari mentioned areas like ethanol-based fuel-efficient equipment, smart technologies for swift urban transport, etc., which could be marketed in India to reduce the huge import bills.

Discussing the importance of waterways, he said the cost of moving men and materials through inland water was only a fraction of the total haulage through rail and road, and the government was considering several such projects including cruises to organically link inland transport with tourism.

In the Sagarmala project, where the government plans to invest Rs 600,000 crore, the minister said industrial clusters would be set up near ports to help reduce transportation costs -- both for domestic and international movements.

Speaking at a FICCI even on "Progressive Maharashtra 2017 & National Executive Committee Meeting on Transforming Infrastructure: Current Status and Impact on Growth of State Economy," he said the government had granted approval to 26 irrigation projects in the state.

These would increase the irrigated area from 22% to 40% in two years, thus helping the farmers in suicide-prone areas of the state.

Further, schemes like Sagarmala, Port Development, Inland Waterways and four-lane highways would spur the state's economic development, he said.

Gadkari said once the cruise terminal was launched in Mumbai after five yers, 950 cruises would be able to operate there, which would have a multiplier effect on other tourist infrastructure in Mumbai and rest of the state.

Print Rate this article:
No rating

Number of views (265)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free