NHAI to Branch Out into Realty Development to Raise Resources for Bharatmala Programme
The National Highways Authority of India is planning on engaging in real estate development plans in order to pay their way for their ambitious Bharatmala highway projects. The organisation is planning on leveraging the extending demands and rise in the land prices following the construction of the much-coveted roads and national highways. It was the private developers to date who churned profits from this land price escalation. The same is now going to be acquired by NHAI itself.
National Highways Authority of India is going to ask the state government around the country to acquire the land parcels alongside the project lands which will then be either developed or auctioned by them to raise funds for the Rs. 5.97 trillion Bharatmala project. These planning’s were initiated owing to the immediate need for funding amounting to Rs. 1.5 trillion in this financial year for the construction of roads and highways around the country.
In a recently issues statement, an NHAI official claimed that they have already hired a consultancy firm who is going to prepare a whitepaper capturing the necessary financial clauses associated with the Bharatmala project. They have observed that every time the organisation plans on the construction of any kind of road or expressway, the land associated with experiences a sudden hike in the price. NHAI is planning on monitoring the prices on their own if the state government permits their request.
As per the ongoing plans, a land parcel of approximately 1-2 square kilometres is going to be sought around the ring roads while the same is going to be extended to 5-6 sq. km around the Greenfield expressways. In best interests of NHAI and the state governments, a cap on the area surrounding the real estate development is going to be harnessed. The whitepaper that is going to be prepared by the firm is going to be forwarded to the state governments for consultation and approval following which concrete plans are going to be implemented.
The process of land acquisition has become a lot easier over time owing to the increased prices that are offered to the farmers and the owners of the land. The compensation offered to the farmers over the last four years has increased from Rs. 90 lakh per hectare to Rs. 2.80 hectare. NHAI itself has acquired over 9000 hectares of land in the last fiscal year. The NHAI officials have clarified that none of their propositions is going to be implemented without any kind of approval from the state government.
All of these propositions are being issued for the successful implementation of the Bharatmala programme which is aiming for the construction of 34,800 km of national highways around the country. Majority of the projects are going to focus on the Greenfield projects while there are going to be the construction of expressways and economic corridors excluding the prior. NHAI has been simultaneously coming up with innovative ideas to raise funds for their ambitious Bharatmala project and it is hopefully going to be operational in the present fiscal year.
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