Tribune press service
New Delhi, December 17
Union Minister Nitin Gadkari on Friday assured investors that the internal rate of return (IRR) of infrastructure projects in the country is very high and they should not worry about their investments in the sector.
“The internal rate of return (IRR) is very high and therefore there is no problem with the economic viability (of infrastructure projects in the country),” the Minister of Road Transport and Highways said. He was speaking at a conference on investment opportunities in highways, transport and logistics held in Mumbai.
Gadkari said the Mumbai-Pune Express expressway, which was constructed at a cost of Rs 1,600 crore, was first monetized for Rs 3,000 crore and later for Rs 8,000 crore.
The government does not award projects until 90% of the land is acquired and forest and rail clearances are in place, he said.
Gadkari assured investors that with all the clearances in place, there is little chance of any infrastructure project getting stalled in the country. He added that reducing the cost of logistics can boost economic growth.
While the logistics cost in China is around 8-10% and 12-13% in America and Europe, it is 14-16% in India.
The reason for the high logistics costs in India is due to the lack of road and rail infrastructure, the minister explained.