New Delhi: Standing Parliament Committee has recommended Bank of India Finance Reserves of long-term road infrastructure projects that utilize increased foreign exchange reserves.
This has recommended the National Highways Authority of India (NHAI) to find innovative mechanisms to fulfill high debt service obligations, which almost Rs 39,000 Crore at 2021-22, almost a third of this year’s budget allocation to the Ministry of Highways.
Referring to a high increase in foreign exchange reserves, which is now at $ 613 billion or RS 45.67 lakh crore, the committee of erect transportation, tourism and culture says, “The Committee recommends that the RBI, with consideration of the adequacy of foreign reserves, can consider the possibility of utilizing surplus funds To finance long-term road infrastructure projects in this country.
RBI can also see the feasibility of surplus reserves for the creation of sovereign assessment funds to finance the term infrastructure assets.
“The Committee has also recorded an increase in the obligation of NHAI debt services, which has increased from almost Rs 22,000 Crore In 2020-21 to Rs 39,000 Crore during the current financial year.
For the next two years, responsibility for around RS 29,000 Crore, respectively.
Nhai’s debt has reached Rs 3.17 lakh Crore at the end of 2020-21.
The panel has suggested NHAs to look into several suggestions passed by financial institutions and banks to overcome this.
It is recommended that NHAI must take advantage of funds available with insurance companies and pension funds, both India and foreigners.
It must also be used for existing asset securitization to attract retirement funds.
“Multilateral Agency, Infrastructure Investment Companies overseas Japan for Urban Transportation & Development (Join), Sovereign Pension Funds and Sovereign Assets can also be approached by NHAI, with the appropriate guarantees and comfort of the Indian government,” the committee said.
Break Nexus Contractor and approve parliamentary parliamentary panels have also recommended NHAI and other wings from the Ministry of Transportation to take action on the possibility of the relationship between contractors and approve authority, including independent engineers, which are third parties, and the officials concerned.
“Cases where the road deteriorates shortly after the settlement must be seen and the basis in which the certificate of settlement for the project has been issued, must be examined.
Accountability can be improved in cases where guidelines have openly neglected during the implementation of road projects,” Said.