The government is set to retain its focus on rapid infrastructure development this fiscal, with plans to potentially increase capital expenditure allocations for the Ministry of Road Transport and Highways (MoRTH) in the upcoming budget for FY25, according to a report.
The report indicates that the increase in allocations is expected to be moderate, likely ranging between 5 percent and 10 percent above the FY24 revised estimates.
This adjustment comes as the government anticipates a significant rise in private sector investments in road construction projects, particularly under the build-operate-transfer (BOT) toll model.
Private investments in FY24 reached Rs 34,805 crore and are projected to nearly double in FY25, up from Rs 20,000 crore in FY23.
The BOT toll projects allow private sector participants to assume construction risks and invest in road development, thereby reducing the burden on government spending.
Approximately 20-25 percent of highway projects this year are expected to be awarded under the BOT toll model, easing the government's financial outlay for infrastructure development.
This strategy aligns with the government's broader objective of accelerating infrastructure growth while managing fiscal prudence.
With this focused approach, the government aims to sustain the momentum of infrastructure development, crucial for economic growth and connectivity improvements across the country.
The anticipated budget allocations are expected to bolster ongoing and new road projects, ensuring enhanced connectivity and supporting economic activities.
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