New Delhi: Union Ministry of Road Transport and Highways has sought a fund allocation of Rs 1.10 Lakh crore for the vital Road sector, but it seems Finance Ministry isn't too keen and positive for the ministry's request.
According to top sources, the demand has been raised citing two important reasons. Funds are direly needed for laying up of extensive highways network in India, and to further enhance the per day road construction target from the current 26-27 km per day to 40 kms per day.
Top sources say that FM may allocate funds anywhere between Rs 90000 - Rs 95000 crore. Although it would be an increase from the last year allocated a budget of Rs 83000 crore but not as per the expectations of the Nitin Gadkari-led ministry.
Zee Media has learned that the FM has clearly conveyed to the Road Ministry to generate more funds for itself through alternative mechanisms.
The Road Ministry is now acting on ways and measures like land monetization, models like TOT (Toll Operate and Transfer), Hybrid Annuity Model, and Tolling system in Highways to attract more and more private players in the sector.
Notably, the Road Transport Ministry has completed NH length of 7000 kms this year, and is moving at a pace of 26 kms per day road construction. The average construction speed seems good, but it is far less than the target of 40 kms per day.