NHAI unveils Rs. 18,850-cr project financing plans

In a bid to ensure smooth flow of funds for the upcoming and on-going road projects, National Highway Authority of India (NHAI) plans to generate Rs. 8,500 crore from LIC and another Rs 10,000 crore from National Small Savings Fund to finance the ambitious road construction target under the Bharatmala highway building programs. NHAI is also raising Rs 5,000 crore via masala bonds, which will be used for the construction of the 10 expressway projects across the country. The funds would be raised for a tenor of 15 years at an interest rate a little less than 8%. Borrowings in the first quarter of this financial would be around Rs 25,000 crore as NHAI is also hoping to receive Rs 9,681 crore in May through monetization of highways. The government recently concluded auction process for leasing out nine national highways in Gujarat and Andhra Pradesh. Sydney-headquartered Macquarie group won TOT bids for nine national highways with a total length of about 700 km and payment from Macquarie group is likely to come in May. In the current fiscal, NHAI is looking to raise nearly Rs 1 lakh crore in borrowings and monetization of national highway projects as it is likely to undertake the construction of 5000 km of national highways, official sources claimed.