You are aware of the importance of infrastructure in the development of economy in any country. Roads transport services, railway network forms the lifeline for trades and business within the country. So it is necessary to discuss the provisions made for the road ministry in the budget 2016 by government of India. Let us take a look at these provisions.
- The roads ministry is likely to seek a loan of above Rs 50,000 crore from LIC on soft terms.
- The government plans to award road construction contracts for a little over 10,000 km of highway next financial year.
- 50,000 km of state highways would be upgraded to national highways, which would entail a significant investment.
- #Budget2016 allocates Rs 55,000 crore as budgetary grant to the roads ministry.
- National Highways Authority of India (NHAI) is allowed to raise tax free bonds worth Rs 15,000 crore.
- The roads ministry has a target of doubling the country’s highway length to 2 lakh kilometres. To achieve this, the ministry has prepared an ambitious investment plan of Rs 2.67 lakh crore.
- To raise resources for the highway development plan, the government is also planning to lease out 104 of its completed highway projects, currently being operated by NHAI, to investment funds on toll-operate-transfer (TOT) basis.
- Last year, Indian Railways had sought a loan of Rs 1.5 lakh crore from LIC to invest in its capacity expansion plan.
These are some of the provisions from the budget. Lets us know you views on it. Do you see the ambitious target of constructing roads – 30kms per day in the range?