The Bharatiya Janata Party government in Rajasthan is examining some innovative financial options, including public-private partnership (PPP), for securing increased funding for the expansion of road infrastructure. Infrastructure investment trusts, asset monetisation and corporate responsibility frameworks are some of the choices being considered in this respect.
Rajasthan ranks seventh in terms of the State highways and second largest in terms of the national highways in the country. The Rajasthan State Highways Authority has started adopting new measures to cater to the need for better connectivity and facilitate innovative investment and financing models.
Deputy Chief Minister Diya Kumari, who holds the Public Works Department portfolio, said here that the development of highways would be crucial for the success of the national-level flagship programmes with better rural connectivity. Ms. Kumari said the potential for the development of industries and tourism in the State could be fully exploited with the construction of roads of good quality.
Ms. Kumari addressed a workshop on “Financing models for road infrastructure development”, organised jointly by the PWD and the India Infrastructure Finance Company Limited (IIFCL) Projects here earlier this week. Experts attending the workshop spoke on the asset monetisation avenues, green finance and sustainability, and the hybrid annuity model for PPP projects in road infrastructure.
IIFCL is a leading public sector infrastructure finance institution, which has funded about 21% of the country’s national highway capacity, comprising nearly 30,000 km roads. IIFCL Projects is a subsidiary of IIFCL providing advisory services to the Union and State governments.
Ms. Kumari said the State government would work closely with the IIFCL Projects for strengthening its road network and bring it on par with those in Tamil Nadu, Maharashtra and Gujarat. The “double engine government” would develop the State Highways Authority as a premier developer of roads on the lines of the National Highways Authority of India, she said.
IIFCL Projects chief executive officer Palash Srivastava said Rajasthan could become the country’s first State to garner funds for green highways and set up its own Infrastructure Investment Trust. IIFCL managing director P.R. Jaishankar highlighted the State’s potential to raise resources through innovative means for financing of road development works.
