Need innovative funding model for highways as bank finance delays projects: Nitin Gadkari

Stressing on the need for innovative funding models for the highways sector as bank financing delays the process, transport minister Nitin Gadkari said on Tuesday the government is considering asset reconstruction company for stalled highway projects. Gadkari also suggested the highway companies to jointly form a non banking finance company (NBFC) to garner resources for highway construction in the country with support from foreign funds.

"Railways has got a finance corporation. Power ministry has a finance corporation. but there is no such corporation for the highways sector, which has the maximum capacity to consume the funds," Gadkari said.

Talking about the options amid the situation, Gadkari said, "Infra firms should join hands to set up an NBFC. The NBFC can tie up with foreign funds, to raise low-cost funds via dollar hedging and sanction loans to the members while mortgaging the toll rights. We need new funding models to finance road projects. Bank funding is full of delays."