Private banks, including HDFC, have shown interest in funding highway projects in public private partnership (PPP) mode, Parliament was informed today. “Some private banks, including HDFC and Kotak Mahindra Bank, have shown interest in funding some PPP proejcts,” Road Transport and Highways Minister Nitin Gadkari told Lok Sabha in a written reply today. The minister, last week, had informed the Lower House that banks have assured funding to the tune of Rs 1.30 lakh crore for highways construction.
Under PPP model, the concessionaire has the responsibility to tie up the funds from the banks/financial institutions. Gadkari said in the reply today, “the matter related to funding the projects under PPP is a matter between the concessionaire and the bank.”
Last week, the minister has said he has held meetings with banks, RBI Governor and Union Finance Minister regarding funding to the road sector. “Banks have informed me in writing that they are ready to give Rs 1.30 lakh crore for funding of highway projects built in EPC (engineering, procurement, construction) mode,” Gadkari has said.