economy

Investment in infra will definitely give good returns: Nitin Gadkari

Investment in infra will definitely give good returns: Nitin Gadkari

Union Minister Nitin Gadkari on Friday assured investors that the internal rate of return (IRR) of infrastructure projects in the country is very high and they should not worry about their investments in the sector. The internal rate of return (IRR) is very high and so there is no issue with economic viability (of infrastructure projects in the country), the road transport and highways minister said. Nitin Gadkari said investment in the infrastructure sector and said that such investments will definitely give good returns. Citing the example of the MSRDC project, the minister said that it was built at almost half the price. We set up MSRDC project at almost half the price. Reliance was quoting ₹3,600 crores but we completed the project in just ₹1,600 crores and saved ₹2,000 crore, he said. He was speaking at a national conference on investment opportunities in highways, transport and logistics. He said the Mumbai-Pune Express Highway, which was built at a cost of ₹1,600 crore, was first monetised for ₹3,000 crore and later for ₹8,000 crore. The government does not allocate projects until 90% of land is acquired and forest and railways clearances are in place, he said. Gadkari assured investors that with all clearances in place, there is minimal chance of any infrastructure project getting stalled in the country. He further said reduction in cost of logistics can boost economic growth. While the logistics cost in China is in the range of 8-10% and 12-13% in America and Europe, it is 14-16% in India. The reason for high logistics cost in India is due to lack of roads and railway infrastructure, the minister explained. According to him, the size of the automobile sector in the country may reach ₹15 lakh crore over the next five years, compared to ₹7.5 lakh crore at present. Download.

economy 2021-12-18 Livemint