Road ministry explores financing options for Delhi-Jaipur Expressway
After the new land acquisition law came into force, the Road Transport and Highways (RTH) Ministry is looking for options like real estate development along the Delhi-Jaipur Expressway to finance it as land cost alone has trebled.
After the new law came into force the land cost has trebled, the cost of ~11,750 project that incorporated provision for land acquisition is likely to shoot up by at least ~30,000 crore.
A ministry official informed that as per the National Highways Authority of India (NHAI) the cost of land alone for 272 km expressway would be about ~18,000 crore from the estimated ~6,000 crore.
The development comes hardly a month after the RTH Ministry has been asked by the Prime Minister’s Office to move a Cabinet note for the project mentioning it would be the first such highway to be built by the central government.
A PMO statement had said, “The Delhi-Jaipur Expressway is one of the announcements of the Prime Minister in November, 2013 which has been taken up as a priority project of the government. As on date, there is no expressway built by central government and Delhi-Jaipur Expressway would be the first.”
The ways are being explored by the Ministry for financing the project which may include development of real estate along the stretch or building it around the existing highway as per the official.
Stake holders of the following states Delhi, Rajasthan and Haryana have been asked to advice on possible financing modes by the ministry, before proceeding on the project, the official added.
Including land acquisition and pre-construction activities, the project cost for the Delhi-Jaipur Expressway has been estimated as 11,750 crore by the Road Ministry.
Oscar Fernandes, RTH Minister had mentioned earlier that until a major portion of the land is handed over in the construction of the proposed Delhi-Jaipur expressway, financial institutions will shrink from funding of the project.
Source: The Tribune
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