MoRTH moots infra finance fund for highway builders

The Ministry of Road Transport and Highways (MoRTH) has called upon major highway builders and private companies to look into floating an infrastructure finance fund or non-banking financial company to fund road projects. As per the ministry, only big and financially strong contractors with a sound relationship with banks should take the lead. The highway builders should put in Rs 1 billion each to form an infrastructure finance company. The ministry will also ask NHAI to put in equity and then tie up with a foreign fund. The government wants to support the industry, as the competent builders are not in a position to bid for highway projects due to lack of support from the banks.