Those paid on 1st day of month never understand the value of money, says Nitin Gadkari

The Union Minister for Road Transport and Highways, Nitin Gadkari has drawn attention to the financial challenges faced by private contractors involved in build-operate-transfer (BOT) projects. Speaking about delays in these projects, Gadkari pointed out that contractors who rely on loans to fund their projects encounter rising interest costs, making their ventures economically non-viable.

In a recent statement, Gadkari said, "Those who get their salary on the first date of every month never understand the value of money." The minister emphasized the difference in perspective between individuals receiving regular monthly salaries and those dealing with the financial intricacies of project loans.

According to Gadkari, private contractors undertaking BOT projects experience a daily increase in interest costs, creating substantial financial burdens. This, in turn, jeopardizes the economic feasibility of their projects, as delays often result in unforeseen expenses and hinder timely project completion.

Gadkari's remarks shed light on the core issue at the beginning, highlighting the financial struggles of BOT project contractors. The analogy used by the minister vividly illustrates the contrasting financial realities faced by individuals receiving fixed salaries and those grappling with the challenges of loan-dependent project financing.

Gadkari's insights into the economic non-viability of delayed BOT projects underscore the urgent need for streamlined processes and effective project management to ensure the success of infrastructure initiatives. As the government continues to focus on infrastructure development, addressing these financial challenges becomes crucial for the sustained growth and success of such projects.