NHAI in good fiscal health with solid projects: President NN Sinha
New Delhi, September 4 () Reducing fears that NHAI faces a fiscal crisis or a high contingent liability, its president NN Sinha said Wednesday that the Authority was in a very strong position with a solid portfolio of projects.
The National Highway Authority of India (NHAI) is on track to build some 4,500 km of projects, more than 1,000 km than the 3,300 km of projects last year, he said.
There have been reports in the media sections that the NHAI contingent liabilities are something like Rs 3 lakh crore. Or people do not understand what the contingent liability is or the numbers are wrongly reported. The contingent liability is uncertain by nature.
Our evaluation and depending on the proportion of payment we have, we do not see so much happening ... We see that the total amount of claim on NHAI because of the arbitration is approximately Rs 70,000, Sinha said here in a statement. IIC event.
He said the projected numbers (Rs 3 lakh crore) were clearly far away.
The comment is clearly misinformed and probably designed to increase sadness ... We should take an objective fact ... NHAI books are in sight if someone wants to see ... just because you have a comment and want to add to the type of image you want to portray ... that is to be very cruel and not fair to the sector, he said.
Sinha said, currently NHAI has arbitration claims worth Rs 70,000 crore and there are multiple sources of income.
Despite the model code of conduct during the elections, he said that NHAI is on track to build 1,000 km of highway projects more than last year and that the expense would be more rather than less. There should be no worries.
Concerns are raised as to whether the Authority may undertake projects other than in the BOT toll mode ... I must dispel its concerns that NHAI evaluates projects on the basis of viability and there are projects that fit the entire spectrum of viability, he said.
Sinha said that 4,140 km projects reach a performance level of 9% or more and this does not include greenfield projects since traffic numbers are uncertain.
In the BOT toll mode (build, operate, transfer), he said that all projects will not fit into BOT and there are a variety of instrumentation approaches, adding that under the Bharatmala program itself, approximately 60 percent of the Projects will be funded under HAM (hybrid annuity mode), about 30 percent in EPC mode (engineering, procurement and construction) and about 10 percent in BOT toll mode.
Obviously when you have new projects like Vadodara Mumbai Expressway, some of them can be run under EPC and others in HAM, but the BOT toll approach may not be viable, he said.
On the funds, he said that the Authority will request more budgetary resources from the government and is also mobilizing market resources in addition to revenues from road construction.
He also said that NHAI is likely to float InVit (Infrastructure Investment Trust) by the end of the year and was awaiting Cabinet approval.
In addition, Masala will join the melody of Rs 5,000 crore this year.
Sinha also talked about contributing to Jal Shakti Abhiyan through the mechanism of water cultivation in road construction.
Last month, the Minister of Roads Nitin Gadkari also rated the reports indicating financial problems in NHAI without foundation and far from reality. Earlier, addressing the IIC Infranet 2019, the Minister of State for Road and Highway Transport, Gen VK Singh, emphasized the need to customize global trends and technologies to meet indigenous needs in the road and highway sector. NAM NAM ANU ANU