Mumbai, August 12: As every sector has been backed up financially which is essential core needed for the development. Minister for Road Transport, Highways and Shipping Nitin Gadkari expressed hopes for setting up the independent ‘financial arm’ which will solely cater to the roads and highways sector.
Minister Nitin Gadkari said that the government is actively considering setting up an independent financial institution to cater exclusively to the roads and highways sector along the lines of Power Finance Corporation Limited, Mint has reported. National Highways Authority of India and foreign investors can put Rs 1,000 Crore each to create this finance arm, he added.
“We are planning to set up a vehicle in National Highways Authority of India with on the lines of Power Finance Corp.,” Gadkari said.
He added that the proposal is still at an evaluation stage and the government looking to tie up with foreign investors.
“The power ministry has a finance arm. The road ministry has a much larger scope of work than power, but we don’t have such a financing arm. Investors from Japan and (South) Korea are keen on such structures,” he was quoted as saying.
Nitin Gadkari said that the government is committed to infrastructure development and the track record of last three years has increased the faith of the investors which has resulted in 76 times oversubscription of IPO of Cochin Shipyard Ltd.
Speaking on the occasion he signified the success of government’s economic policies, friendly approach for development, transparency and corruption free system.
Explaining further he said that the efficiency of the government ports has increased by 2.86% in comparison to private ports. The Minister also said that in the shipping industry there is a lot of potential for ship building and ship repairs. He said “In the next 15 days the work of 10 inland waterways will be started in the different parts of the country. Inland waterways are a game changer. It is going to reduce the logistic cost and this will help the industry in export promotion and create more employment.”