Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 14:08 IST

14% Hike in Allocation for Road Transport & Highways

ECB to be Allowed for Capital Expenditure on O&M of Toll Roads

8,800 Km Target Set For NHDP

The allocation for the Ministry of Road Transport & Highways has been enhanced to Rs. 25,360 crore, in 2012-13 which is a 14% hike from the previous allocation. This was announced by ShriPranab Mukherjee, Finance Minister while presenting the General Budget 2012-13 here today.

The Finance Minister proposed to allow External Commercial Borrowings (ECB) for capital expenditure on the maintenance and operation of tolled roads and highways, as long as it is part of the original project. This is with a view to encourage PPPs in the road sector, he mentioned.

The Finance Minister, Shri Mukherjee has set the target of 8,800 km for the highways to be constructed under the NHDP during 2012-13. He stated that the Ministry of Road Transport & Highways is geared up to achieve the target of awarding projects for 7,300 km under NHDP during 2011-12. This would be 44% higher than the figure of 5,082 km awarded during 2010-11. The Finance Minister informed that out of the 44 projects awarded during 2011-12, 24 projects have fetched a premium.

DSM/MV/LMP/24

External commercial borrowings allowed for toll-road capital expenditure to encourage PPPs, subject to original project inclusion. Allocation for the Ministry of Road Transport & Highways increased to Rs. 25,360 crore for 2012-13 with an NHDP construction target of 8,800 km. External Commercial Borrowings (ECB) are permitted for capital expenditure on maintenance and operation of tolled roads and highways only when such O&M capital expenditure is part of the original project, to encourage public-private partnerships.