Gatishakti programme worth Rs 100 lakh crore will provide framework for the National Infrastructure Pipeline (NIP) initiative’s timely implementation with minimal cost overruns, said Road Transport Secretary Giridhar Aramane.
On August 15, PM Narendra Modi announced Gatishakti, an infrastructure development programme which is expected to boost employment opportunities as well as productivity of industries. According to a PTI report, the initiative is set to be launched in the month of September.
The National Infrastructure Pipeline was launched with as many as 6,835 projects and since then the numbers have expanded. During FY 2020-25 period, the projects identified under this programme are estimated to need Rs 111 lakh crore investment.
Both these initiatives will play a major role in giving a boost to infra development activities amid the nation striving to become a USD 5 trillion economy in the coming future. So NIP implementation will be a huge problem without Gatishakti. Thus, it is essential that Gatishakti is implemented along with the NIP so that full efficiency is harvested, the Road Transport Secretary said.
Aramane, while replying to a question, said the entire procedure of launching the InvIT has been completed, the National Highways Authority of India (NHAI) has also discussed with various investors and there is a very good response. He further said that Canadian pension funds have shown interest in NHAI InvIT. Besides, some other investors from abroad are also interested, he mentioned. Domestic FIIs as well as other firms who are involved in the tolling contracts will be interested in taking the stake as well, Aramane, who is also NHAI’s Chairman, stated. In terms of the investments, there shall not be any problems, according to him.
As per a recent Niti Aayog document, the issue of NHAI InvIT is envisaged to be privately placed and the fundraising’s indicative value from the current tranche underway is approximately Rs 5,000 crore. It is expected that the fundraise as well as issue listing will be completed during FY22, subject to market conditions and toll revenues’ stabilisation in wake of the COVID-19 pandemic, the document had said.
The InvIT’s first tranche is likely to consist of 586 kilometres of National Highway assets in the states of Gujarat, Rajasthan, West Bengal, and Bihar. The NHAI is also exploring the second tranche of follow-on-issue of the InvIT, it noted. On the award of new projects by NHAI in the year 2021-22, the achievement of this year has been better than the previous year, Aramane said.