Bullish on highway contracts worth Rs 9,22,404 crore under construction as on March 31, 2021, and total contsruction of 13,298 km in FY21 translating into an average of 36 km per day, Road Transport Minister Nitin Gadkari said on Thursday that the government will construct highways at pace of over 40 km per day in FY22.
In his address during commemoration of construction of national highways at record speed in 2020-21, Gadkari said, "Despite COVID, when every sector is facing problem, we have constructed highways at record pace of 37 km in a day."
Gadkari said that the government will construct highways at a pace of over 40 kms per day in 2021-22. "We are spending at least Rs 2,50,000 crore annually on highway construction and at present projects worth Rs 6 lakh crore are under various staged of implementation."
Gadkari also said that in the last seven years, stalled highway projecrs worth Rs 300,000 crore have been salvaged and the bank non-performing assets (NPAs) have been prevented.
Experts commend the pace of highway infra creation and attribute it to measures taken by government to mimise impact on contractors.
"Transport Ministry and its agencies have done well to ensure that the effect of COVID-19 on contractors was minimised. They brought out a comprehensive COVID relief package including policy measures to resolve cash flow problems and contractual relief to contractors. The roads sector has also emerged as a preferred investment destination for investors looking for low risk, long term returns," said Kushal Singh, Partner, Deloitte India.