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Five banks willing to provide Rs 2.5 lakh crore for highway projects: Nitin Gadkari
Jan-29-2020

The road transport minister Nitin Gadkari has said five banks are willing to provide Rs 2.5 lakh crore for highway projects, and stressed on the need for insurance of infrastructure projects. He also said that the government is contemplating to create a Motor Vehicle Accident Fund for hit and run cases.

He stated that the National Highways Authority of India (NHAI) has 480 bankable projects and its toll operate and transfer (TOT) model has been a success. Moreover, he mentioned that the need for including road projects in the country into the ambit of insurance. He added several countries in the world are following the practice of insuring infrastructure projects. These include Canada, Australia, USA, South Africa and UK.

Besides, he said that the Supreme Court has made it mandatory for all new two wheelers to have five-year third party insurance. Similarly, for cars and commercial vehicles, it is mandatory to have three-year third party insurance. In case of default, there is a provision of fine up to Rs 2,000. Under the third party insurance, the responsibility of compensating an accident victim shifts from the vehicle owner to insurance company.


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