Budget 2016: Highway Ministry expects 25 per cent rise in allocation

NEW DELHI: As government continues to focus on key infrastructure sectors to push growth, the road transport and highways ministry is expecting an increase in budgetary support by 20-25% for 2016-17.

For 2015-16, the allocation in budget estimate was around Rs 45,500 crore and another Rs 1,400 crore was provided in the revised estimate stage. The rise in budgetary sup port is crucial since the Centre will continue expanding majority of highways with total government funding. Moreover, even in case of projects that will be taken up under a new PPP model known as “hybrid annuity“, government has to pay for 40% of the cost upfront during the construction period. The outgo for highway construction is likely to increase for the next few years because of ongoing works and rolling out of a greater number of contracts.