NHAI may give realty projects on its land

Officials said on condition of anonymity that the highway authority plans to offer land for construction of hotels, warehousing centers and affordable housing projects along national highways.

“NHAI has offered land along the highways to the housing ministry and other departments at concessional rates,” said one of the officials. The move is being perceived with a twin objective- better monetization of NHAI’s land banks and to drive economic growth, the official added.

Both the officials did not disclose the size of NHAI’s land bank and the quantum of land proposed for realty development.

answer a question from MintThe Ministry of Road Transport and Highways, the nodal ministry of NHAI, said that the authority acquires land only for building highways and the additional land is used for peripheral activities related to highways.

The housing ministry did not respond to a request for comment.

Highways as well as land banks belonging to the NHAI generally make way for public facilities such as retail outlets, restaurants and ATMs. Such land banks will now also be offered for realty development, especially along highways touching pilgrimage centers and other places of tourist interest.

The second official said that in terms of residential development, the projects will largely consist of affordable properties. Affordable housing has been the main focus of the Government with the Housing for All Missions. The move, if implemented, is expected to give a boost to the real estate sector, which has been going through a slowdown in the past few years due to currency demonetisation, liquidity crisis and the pandemic.

Malcolm Athaide, Chief Executive and Co-Founder, Agrim Housing Finance, said the plan to build warehousing centers and affordable housing projects along national highways will spur the development of several micro sectors and create good micro real estate markets.

“The move will also lead to monetization of land along major national highways, thereby improving the finances of NHAI. This will create employment opportunities for both skilled and semi-skilled workers, resulting in all-round development of many sectors.”

The plans come at a time when the government is looking to improve connectivity to tourist destinations. In a recent interview, Transport Secretary, Giridhar Armane said that a major thrust is being given to connect places of interest for tourists, including religious places, with national highways.