One of the biggest construction companies in the world, China Railway Construction Corporation, is keen on investing whopping Rs 35,000-40,000 crore in India’s roads and highway sector.Talks were held between top executives of the Chinese major and National Highways Authority of India (NHAI) Chairman Raghav Chandra.
"They are keen on bidding for around 3,000-km highway contracts. They will be participating in hybrid annuity, build-operate-transfer (BOT) and engineering, procurement and construction (EPC) models," Chandra told ET.
If the bidding sees light of the day, it would be the single largest foreign investment in India’s roads sector and would help ndia's road transport and highways ministry achieve the target of 40 km per day, or 15,000 km for the current financial year.
The corporation could then also bid for several expressway projects that are considered to be high traction in terms of return on investment.
The Chinese corporation builds 60 per cent of highways and 80 per cent of railway tracks in China.
Recently, many foreign companies and investors have shown keen interest in investing in road projects. Road transport and highways minister Nitin Gadkari also attracted investors from US to invest in India.
Investor interest in the sector had weakened drastically after 2010 due to difficulties related to land acquisition and getting various approvals, besides public opposition to toll collection. Projects worth less than Rs 10,000 crore were awarded in FY15.