Gadkari urges companies involved in highway projects to set up infra fund to fund road projects
New Delhi: Road transport minister Nitin Gadkari has urged various companies involved in highway and road building projects in the country to set up an infrastructure fund to finance infra projects.
“Why don't you find an alternative? Each of you should put Rs 100 crore to form an infrastructure finance company. I will ask NHAI to put equity and then you tie up with a foreign fund. The banks will behave only when they come to know that you have some other option. That's how things work," said Gadkari.
While speaking at a virtual meeting organised by ASSOCHAM, Gadkari said that only big companies which are financially strong and are on good terms with commercial banks are getting the required funds.
He said that highways ministry currently does not have a financial company or division to provide support to the contractors. "Bank guarantee and financial closure are becoming problem in case the hybrid annuity model (HAM) for building National Highways," he said.