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Bharatmala Pariyojana Phase I Expenditure Reaches Rs 4.10 Trillion: Update by Nitin Gadkari

As of October 31, 2023, a total expenditure of Rs 4.10 lakh crore has been incurred under Bharatmala Pariyojana Phase I (BPP-I), according to Union Road Transport and Highways Minister Nitin Gadkari. The minister addressed concerns raised by the Comptroller and Auditor General (CAG) regarding the increase in the cost of Phase I of the project.

Total Expenditure and Observations by CAG

  • Total expenditure under BPP-I stands at a substantial ₹4.10 lakh crore.
  • The Comptroller and Auditor General (CAG) has noted observations regarding the increase in the cost of Phase I of Bharatmala Pariyojana.

Funding Details and No Diversion of Funds

  • There has been no diversion of funds from other schemes during the execution of BPP-I.
  • Projects initially planned under other Ministry of Road Transport and Highways schemes were reprioritized under BPP-I based on network planning.

Reasons for Cost Variations

  • The variance between actual project cost and normative cost is attributed to factors such as increased raw material costs, escalated land acquisition expenses, construction of high-speed corridors, and GST rate hikes.

Project Approval and Scope

  • In 2017, the Cabinet Committee on Economic Affairs (CCEA) approved BPP-I, encompassing the development of 34,800 km of National Highway corridors with a total outlay of Rs 5.35 lakh crore.

FASTag Collections and NHAI Funding

  • The National Highways Authority of India (NHAI) collected Rs 53,536.48 crore from 2020-21 until November 23, 2023, as user fees at toll plazas on national highways through FASTag.
  • NHAI has raised a significant amount of Rs 70,127 crore through the monetization of National Highways using Toll Operate and Transfer (TOT), Infrastructure Investment Trusts (InvIT), and project-based financing modes.

Private Investment and NH Development

  • Private investment totaling Rs 1,12,095 crore has been infused into National Highways since the fiscal year 2018-19.
  • Overall, NHAI, through various financial strategies, has played a pivotal role in mobilizing funds for the development and maintenance of the National Highway infrastructure.

Important Questions Related to Exams

Q: What is the total expenditure for Bharatmala Pariyojana Phase I as of October 31, 2023?

A: Rs 4.10 trillion.

Q: Why is there a difference between actual and normative costs in the project?

A: Increased raw material and land acquisition costs, high-speed corridor construction, and GST rate hikes.

Q: Were funds diverted from other schemes during BPP-I execution?

A: No, there has been no diversion of funds.

Q: How much has NHAI collected through FASTag on national highways?

A: Rs 53,536.48 crore till November 23, 2023.

Q: What is the total raised through NH monetization, and private investments for NHs since 2018-19?

A: Rs 70,127 crore through monetization; Rs 1,12,095 crore in private investments.

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