NEW DELHI: Union transport minister Nitin Gadkari on Wednesday said that public investment in roads and waterways will fetch higher interest rates than bank savings.
Referring to the bonds being planned by the National Highways Authority of India (NHAI), Gadkari said, “We want salaried-class people to invest in projects such as Bharatmala Pariyojana and Sagar Mala. Bank savings do not give the kind of interest they used to give earlier. I have promised to give a higher return of 8 per cent or more to small investors funding my sector.”
The NHAI is aiming to raise around Rs 62,000 crore through bonds this year; it had raised around Rs 52,000 crore during 2017-18.
Gadkari, while speaking at an event organised to mark the 25th anniversary of the National Stock Exchange, said that Rs 10 lakh crore has been invested in infrastructure projects so far and they are ready to invest Rs 7.5 lakh crore more under the Bharatmala project. According to the minister, the sector has the potential to consume as much money as investors are offering and there is a need to create more awareness in this regard.
“Salaried people and rural population still prefer traditional options such as post office and bank savings. There is a need to create awareness among people to invest in nation-building activities as internal investment is as important as foreign investment in the sector,” he said.
He also said that bankers have immense confidence in giving money to his sector and they need to show that confidence towards the Hybrid Annuity Model (HAM). As of date, the government has announced 150 projects under HAM, out of which 58 are hanging for want of fund approvals.