Government To Approach Capital Market To Raise Fund For Road Project, Says Nitin GadkariThe road transport minister said that the ministry will also be opening up projects under the build operate transfer (BOT) model once again
ByTeena Jose•
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Nitin Gadkari, road transport minister, on Tuesday, said that government will approach the capital market to raise fund for four road projects by next month. He was addressing a Ficci event.
"We will be approaching the capital market to raise funds for the four road projects. There will be an assured return of 7 to 8 per cent," said minister in a statement.
As per his words, the money will be raised through infrastructure investment trusts (InvITs) and there will be an investment limit of INR 10 lakh for retail investors.
Infrastructure investment trusts are instruments on the pattern of mutual funds, designed to pool money from investors and invest in assets that will provide cash flows over a period of time.
Gadkari also said that the ministry will also be opening up projects under the build operate transfer (BOT) model once again. He mentioned that India has huge potential for road construction, river connectivity, solid and liquid waste management, parking plaza, irrigation, ropeways and cable car projects.
"We need to accept good technology, research, innovation and successful practices from across the world and within India. We should use alternative materials to reduce cost without compromising on quality," the minister added.
