FinMin concerned over NHAI’s inability to use bond funds

BUS

"Of the money in our accounts, we were to use around Rs 7,500 crore to meet our land acquisition cost for the projects that were to be awarded during the current fiscal but that did not happen because of slowdown in award of road projects," said another senior NHAI official.

Since 2011-12, the highways development agency has raised close to Rs 22,000 crore through tax-free bonds, 54 EC bonds and their share of oil cess. Of this, it raised Rs 5,000 crore through 54 EC bonds in the last two fiscals and another Rs 10,000 crore through tax free bonds. It also received Rs 7,000 crore as its share in the oil cess.

Of the total road project award target of 9,500 km for the current fiscal, the government had set a target of awarding over 7,000 km for NHAI. On the contrary, the highways authority has been able to award only 1,000 km of road projects in the current fiscal. NHAI's plan to award 2,000 km of road projects on engineering, procurement and construction (EPC) mode is awaiting approvals.

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