LIC pushes ₹1.25 lakh-cr in country's highway sector

Insurance giant LIC has agreed to offer ₹1.25 lakh crore line of credit by 2024 to finance highway projects, said the Union Transport Minister, as the ministry is keen on timely execution of the ₹8.41 lakh crore ambitious Bharatmala project that aims to lay a grid of highways across the country. LIC has agreed in principle to offer ₹25,000 crore in a year and ₹1.25 lakh crore in five years for highway construction. The line of credit will be used to fund the ambitious ₹8.41 lakh crore Bharatmala project, which was initially approved at ₹5.35 lakh crore. In the first phase, 34,800 km including 10,000 km of balance NHDP (National Highways Development Project) will be upgraded. Bharatmala program will be funded through cess, toll revenue, market borrowings, private sector participation, insurance funds, pension funds, masala bonds and other initiatives; the LIC credit line is one such initiative.