Enough money for highway projects, spending is an issue: Nitin Gadkari at IT-BT Budget Round Table 2025

Infrastructure is a key pillar to India's growth story and Rs 5 lakh crore can be raised through monetisation of highway assets, Union minister Nitin Gadkari said on Tuesday.

Speaking at the India Today-Business Today Budget Round Table 2025, the union transport minister said that there is no shortage of money for the highways project.

The budgetary allocation for Ministry Road, Transport and Highways (MoRTh) has seen a 2.4% increase in FY26 over the last fiscal. "The challenge is spending the money due to land acquisition and delay in environment related clearances," he said.

The minister further said there had been efforts to get the private sector players in the highways sector. Projects have been bid through Build, Operate and Transfer (BoT) model where private players are getting high rate of return.

"The private players come if there is high rate of return for their investment. The IRR for the highways project is 26% in some cases and insurance and pension funds are investing in the sector," he added.

Talking about the new toll policy under the works, the minister said it will bring relief to travellers and will be unveiled soon. "The toll income is Rs 55,000 crore and it will be Rs 1.4 lakh crore in the next two years. If I go for monetising toll road, we will have Rs 15 lakh crore," said the minister.

He further said that India is set to become the largest exporter of electric vehicles and in the next six months, the prices of diesel, petrol and electric vehicles will be same with budgetary announcement related to duty cuts on capital goods used in lithium-ion battery production.

On the charging infrastructure, the minister said with the increase in EV vehicles, including buses, the infrastructure is set to improve.