Back
Chamarti Sreekar
Passionate about Pos... • 1m
Here is why Nitin Gadkari is more of a businessman than a politician. He has tripled India's road building speed from 12 km per day to 36 km in just 9 years with contracts of over 50 lakh crores. But previous governments couldn't even imagine this kind of investment. So where is he getting all this money from? Well, it's extremely clever financial maneuvering for which even the opposition respects him. So until 2016, roads were built using the BOT model where private players invested 100% and then recovered through tolls over the next 15 years. But unpredictable toll revenue was slowing down the investments. So then Gadkari introduced the HAI model where the government funds 40% upfront and private players invest 60%. And the government rebates the 60% in payments with interest over the next 15 years while it keeps all the toll revenue through NHAI. And he also launched the NHIT in 2021 where investors can invest in roads similar to stocks, earning a share of toll revenue as dividends. And NHIT has raised over $3.1 billion so far. Because he understands whether it's the government or your business. Smart financing is the key to driving sustainable growth.
Replies (1)
More like this
Recommendations from Medial
Download the medial app to read full posts, comements and news.