Budget wants NHAI to build more roads, but look elsewhere for funds
Live MintPhysical connectivity – moving goods and people by roads, rail and air cheaply and efficiently – was the big thrust of Union Finance Minister Nirmala Sitharaman’s maiden budget speech, in which she mentioned the Pradhan Mantri Gram Sadak Yojana, industrial corridors, dedicated freight corridors, the Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN schemes. While the increased capital outlay is proposed to be supported by higher budgetary allocations in railways and metro projects, the National Highways Authority has been tasked with turning to internal and extra-budgetary resources for building roads.For FY20, the budget allocation to the Ministry of Road Transport and Highways increased from ₹99,322 crore in FY19 to ₹1,11,691, rising by a significant 12%. While the budgetary support to NHAI has been increased from ₹68563 crore to ₹72058 crore, the government wants the highways authority to redouble efforts through other fund-raising routes, such as toll-operate-transfer and infrastructure investment trusts. “Whether a Central infrastructure regulator would be required given the proposed heightened connectivity between different infrastructure modes, could be considered.” Support to Sagarmala and schemes under this to boost inland water transport fell to ₹757 crore, from ₹891 crore in the previous year.