Union Road Transport and Highways Minister Nitin Gadkari on Tuesday said infrastructure companies should also float their own non-banking financial companies (NBFCs) to fund road construction related projects.
Mr Gadkari further said the National Highways Authority of India (NHAI) should also have a financial arm like the Power Ministry's Power Finance Corporation (PFC) or the Railways Ministry's Indian Railways Finance Corporation (IRFC).
"Infrastructure companies are now investing huge money on infrastructure. Infrastructure companies should also float their own non-banking financial companies (NBFCs) to fund road construction related projects," he said while speaking at an Assocham event.
Mr Gadkari emphasised that there is a need to develop an innovative financial model for the highway sector as it is difficult to develop infrastructure only with the government money.
The minister noted that some years back, road infrastructure related projects used to get delayed due to delay in land acquisition and environmental clearances.
"But now the situation has improved," he said.
Mr Gadkari asserted that India's road infrastructure will be at par with the United States by 2024.
