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New Delhi, India (Urban Transport News): The Finance Ministry has raised budgetary allocation for the Road Transport & Highways Ministry which is tasked with building highways by a quarter to Rs 2.7 lakh crore, demonstrating the Centre's intent to complete behind-schedule road projects ahead of crucial state polls later this year and the general elections in 2024.
Furthermore, finance minister Nirmala Sitharaman's commitment for phasing out older polluting vehicles is also expected to see financial support for the central and state governments.
The target for highway construction in FY24 is expected to be kept at at least 12,000 km even as higher commodity prices should make road building costlier. This goal is going to be achieved through a capital expenditure (capex) outlay of Rs 2.59 lakh crore, up from Rs 2.06 lakh crore in FY23.
The National Highway Authority of India (NHAI) has got Rs 1.62 lakh crore, up from Rs 1.42 lakh crore in current fiscal. The decision to allocate a negligible borrowing target to NHAI has been continued this year.