UNION ROAD TRANSPORT, HIGHWAYS & SHIPPING MINISTER TO MEET RBI GOVERNOR SHORTLY TO LOBBY FOR CONCESSION FINANCE FOR ROADS & HIGHWAYS PROJECTS

UNION ROAD TRANSPORT, HIGHWAYS & SHIPPING MINISTER TO MEET RBI GOVERNOR SHORTLY TO LOBBY FOR CONCESSION FINANCE FOR ROADS & HIGHWAYS PROJECTS

UNION ROAD TRANSPORT, HIGHWAYS & SHIPPING MINISTER TO MEET RBI GOVERNOR SHORTLY TO LOBBY FOR CONCESSION FINANCE FOR ROADS & HIGHWAYS PROJECTS

No.PR-160
December 20, 2014
New Delhi

 

UNION ROAD TRANSPORT, HIGHWAYS & SHIPPING MINISTER TO MEET RBI GOVERNOR SHORTLY TO LOBBY
FOR CONCESSION FINANCE FOR ROADS & HIGHWAYS PROJECTS


Union Minister of Road Transport, Highways & Shipping Mr. Nitin Gadkari would shortly meet the governor of RBI to provide for directives to all leading commercial banks to facilitate projects finance at concessional rates for all roads, ports and shipping projects since a vast number of them are stuck up for want of funds, the Minister himself confessed today.

Addressing a 109th Annual Session of PHD Chamber of Commerce and Industry here today, Mr. Gadkari said, “prior to the proposed meeting of mine with the RBI governor, I am also meeting the CEOs of leading commercial banks to make a ground for concessional finances for the major infrastructure projects in the sector identified above.  The dates for the suggested meetings have yet to be finalized in the meanwhile the Ministry of Road Transport, Highways and Shipping have cleared of projects worth Rs.40,000 crores for building roads, highways through EPC mode since projects developers are avoiding PPP mode”.

“Roads, highways and ports projects worth Rs.50,000 of crores are still stuck up on account of various clearances including environment related clearances as well as due to interventions of various courts through the ministry has already cleared off for execution such projects worth Rs.150,000 of crores”, said Mr. Gadkari.

Elaborating on his proposed meet for facilitating softer interest rates regime for financing roads, highways and port projects, Mr. Gadkari said that the government was under consistent pressure to put in place an interest regime through which such projects were financed at concessional rates for their earlier execution, he had already sounded the concerns of the government to this effect to governor RBI and during the meeting the issue could be amicably sorted out to the best satisfaction of all projects developers.

The minister said that the center government has decided to allocate Rs.5,000 crores of money to turn the existing Delhi ring road structure into that of cemented roads, the inauguration of which is likely by the prime minister Mr. Narender Modi in the next fifteen days so that the traffic flow in its ring road areas are completely decongested after this project is executed.

Mr. Gadkari also announced that his ministry was able to procure cement at the rate of Rs.120 per bag for building and construction of major national highways including those of Delhi with the cement manufacturers who have already agreed to supply cement for such projects on cash and carry basis.  The necessary tendering process for such roads building has vastly been accomplished.

In his welcome remarks the outgoing President, PHD Chamber Mr. Sharad Jaipuria said that industry had high expectations of the new administration under Prime Minister Modi and therefore, urged the government to be more pro-active in decision taking so that the GDP growth is sustained at desired level and demand for industrial products restored with possibilities of employment multiplying manifold.

Among others who felicitated Mr. Gadkari on his arrival to the 109th Annual Session of the PHD Chamber comprised the incoming President of the Chamber Mr. Alok B Shriram, its Sr. Vice President Mr. Mahesh Gupta and the Executive Director Mr. Saurabh Sanyal.
Ends.