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NHAI under Nitin Gadkari to award ₹2.25L Cr worth of projects

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In FY22, the NHAI (National Highway Authority of India) under Nitin Gadkari will grant 2.25 lakh crores in projects through multiple mediums including EPC, HAM, InvIT.

In the current fiscal year, the National Highways Authority of India intends to grant projects worth approximately 2.25 lakh crore. It had awarded 141 projects (4,788 km) worth 1.71 lakh crore in the previous fiscal.

The NHAI has been allocated 57,350 crore in the Budget for 2021-22, an increase from 49,050 crore (RE) in 2020-21. It has also been granted permission to borrow 65,000 crore in 2021-22, the same amount as in 2020-21. The NHAI can collect a total of 10,000 crores by monetising operating highway projects. InvIT has already filed the required paperwork with the market regulator SEBI in order to raise at least 5,100 crore via its first InvIT (Infrastructure Investment Trust). In addition, several tranches of the toll-operate-transfer (TOT) model will be tested. Toll securitisation can also be used to raise funds as per the office headed by Shri Nitin Gadkari.

The total length of projects awarded in this fiscal year may be about 5,000 km, with HAM (hybrid annuity model) projected to receive the most awards, followed by EPC (engineering, procurement, construction). BOT is expected to gain traction and account for 5-10% of the award basket. The BOT route yielded no project awards in both 2018-19 and 2019-20.

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