NHAI plan for taxable bonds to fund Bharatmala scheme worries govt

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Mains Paper 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Prelims Level: Bharatmala Project, NSC certificates, etc.

Mains Level: Concerns raised by the government


News

What is the issue?

  1. The finance ministry has flagged concerns over state-run National Highways Authority of India’s (NHAI’s) plan to float taxable bonds
  2. The NHAI wants to raise Rs3,000 crore to finance the ambitious Bharatmala scheme for road construction
  3. The plan to float taxable bonds came after the Union budget failed to provide any budgetary assistance for Bharatmala

What are the concerns?

  1. The concerns range from the impact of these bonds on other instruments such as National Savings Certificates (NSC) to the quantum of the float

Particulars of the Bharatmala Scheme

  1. The total length to be developed as expressways under Bharatmala will be 51,000km
  2. India plans to invest as much as Rs5.97 trillion in the current fiscal to bankroll its new integrated infrastructure programme, which involves building of roads, railways, waterways and airports
Roads, Highways and Logistics infrastructure – Bharatmala, LEEP, SetuBharatam, etc.
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