Why in News?
On June 12, 2023, Union Minister for Road Transport & Highways Nitin Gadkari laid the foundation stone of 5 NH projects worth Rs 2,200 crore in Pratapgarh region and 5 NH projects worth Rs 6,215 crore in Deoria in the presence of Uttar Pradesh Chief Minister Yogi Adityanath.
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An Overview of the News:
- The Union Minister laid the foundation stone of 5 NH projects worth Rs 2,200 crore in Pratapgarh region and 5 NH projects worth Rs 6,215 crore in Deoria in the presence of Uttar Pradesh Chief Minister Yogi Adityanath.
- The Union Minister stated that the construction of the 43 km widening of National Highway 330 from Pratapgarh to Sultanpur. The construction, which is being carried out at a cost of Rs 1290 crore, will reduce the travel time from Prayagraj to Pratapgarh via Ayodhya.
- He said that the construction work of the proposed 14 km bypass in Pratapgarh at a cost of Rs 309 crore would also start soon.
- The road safety work for street lights, bus shelters, etc., on National Highway 31 will be carried out at a cost of Rs 27 crore.
- The construction of Pratapgarh-Musafirkhana section will accelerate the development of cement plant, gas plant, bottling plant and dairy milk factory industries.
- All these projects will encourage investment in Uttar Pradesh and create new employment opportunities.
- The inauguration of the construction of a 22 km 4-lane bypass at Deoria, which costs Rs 1750 crore, is scheduled for August 2023.
- These projects will benefit the backward areas of Deoria & Gorakhpur and will also improve connectivity with Bihar.
The National Highways Authority of India (NHAI) funded 40% of the total project cost under the new ‘Hybrid Annuity Model‘. The concessionaire arranged the remaining 60% of the total project cost by way of a mix of debt/equity in a ratio of 48:12.
A consortium led by Punjab National Bank will fund the majority of the remaining funding, while the promoter’s contribution accounts for 12% of the total funding.