In what may adversely impact the road projects of the National Highways Authority of India (NHAI), the Planning Commission has once again denied giving approval to the authority?s long-term borrowing plan that envisages raising Rs 2.56 lakh crore in the next 20 years to carry out the ambitious highway development programme of the government.
NHAI revised its long-term borrowing plan, upwards from Rs 1.92 lakh crore decided earlier, as it factored in the impact of inflation that remained in high zone for most part of the previous year and this year.
In its reponse to fresh borrowing plan forwarded by NHAI, the Plan Panel has said NHAI?s finance programme goes beyond the current five-year development plan of the government and foreseeing the scenario for such a long duration is difficult.
Planning Commission deputy chairman Montek Singh Ahluwalia told FE he could permit NHAI to borrow only till next financial year and that too depending on the availability of funds in the market.
?I am supposed to complete the work on the new finance plan of NHAI, but I could not take a stand on something that goes into the next Five Year Plan and much beyond that. I could allow them to raise funds for the next financial year, depending on fund-availability. I think that is what they need at present,? Ahluwalia said.
The decision of the commision means that NHAI will have to come to it for the annual aproval of investment plan. This, NHAI officials feel would delay projects and lead to further escalation in project cost.
The panel is in the process of preparing the approach paper for the 12 th Plan, during which the government wants to see investments of at least $1 trillion in infrastructure.
In the older Plan, which was approved by the government and Planning Commission
last year, NHAI had quoted a total expenditure of Rs 8.12 lakh crore by 2030-31. In July this year, NHAI revised the total outlay to Rs 9.71 lakh crore, including borrowings of Rs 2.56 lakh crore, due to increasing cost of inputs.