NHAI to raise Rs 46k cr debt in 2-3 years
ROADS & HIGHWAYS

NHAI to raise Rs 46k cr debt in 2-3 years

With the view of part-financing the Rs 93,000 crore worth Delhi-Mumbai expressway (DME) project, a fully-owned special purpose vehicle (SPV) by the National Highways Authority of India (NHAI), is planning on raising Rs 46,000 crore via debt over the upcoming two or three years.

SS Sandhu, Chairman of the National Highways Authority of India (NHAI), told sources that the entire quantum of debt will be raised at the level of the Special Purpose Vehicle (SPV). Further, all the relevant borrowing will be off the NHAI’s balance sheet.

He further stated that the SPV requires borrowing slightly less than Rs 10,000 crore, but they have already received offers amounting to Rs 29,000 crore from financial institutions including banks. The chairman further said they would first wait to see who offers them the best rates and then make a decision accordingly.

For the 1,261 km expressway that is being built under the engineering procurement and construction (EPC) model, wherein the authority bears the entire expenditure, SPV-DME development has been set up. NHAI considered the idea of delivering project-specific SPVs earlier this year intending to diversify its resource base and develop an approach that is self-liquidating with the view of raising funds for these pivotal projects.

Per the proposed plan, the SPV will register the debt on its balance sheet. The NHAI, on the other hand, will be allowed to exercise operational control over the construction, operation, and maintenance of the project. NHAI has always been an accessory of the government concerning raising extra-budgetary resources reportedly had a debt of around Rs 2.28 lakh crore as of February 2020. The toll collections to be pocketed from both the existing Delhi-Mumbai stretch as well as the forthcoming expressway will be utilised in paying back the debt.

With the view of part-financing the Rs 93,000 crore worth Delhi-Mumbai expressway (DME) project, a fully-owned special purpose vehicle (SPV) by the National Highways Authority of India (NHAI), is planning on raising Rs 46,000 crore via debt over the upcoming two or three years.SS Sandhu, Chairman of the National Highways Authority of India (NHAI), told sources that the entire quantum of debt will be raised at the level of the Special Purpose Vehicle (SPV). Further, all the relevant borrowing will be off the NHAI’s balance sheet. He further stated that the SPV requires borrowing slightly less than Rs 10,000 crore, but they have already received offers amounting to Rs 29,000 crore from financial institutions including banks. The chairman further said they would first wait to see who offers them the best rates and then make a decision accordingly. For the 1,261 km expressway that is being built under the engineering procurement and construction (EPC) model, wherein the authority bears the entire expenditure, SPV-DME development has been set up. NHAI considered the idea of delivering project-specific SPVs earlier this year intending to diversify its resource base and develop an approach that is self-liquidating with the view of raising funds for these pivotal projects. Per the proposed plan, the SPV will register the debt on its balance sheet. The NHAI, on the other hand, will be allowed to exercise operational control over the construction, operation, and maintenance of the project. NHAI has always been an accessory of the government concerning raising extra-budgetary resources reportedly had a debt of around Rs 2.28 lakh crore as of February 2020. The toll collections to be pocketed from both the existing Delhi-Mumbai stretch as well as the forthcoming expressway will be utilised in paying back the debt.

Next Story
Real Estate

Power Mech Wins Rs 9.72 Bn Order for Yadadri Township

Power Mech Projects has secured a contract worth Rs 9.72 billion (excluding GST) from Telangana Power Generation Corporation (TSGENCO) for the construction of an integrated township at the Yadadri Thermal Power Station in Nalgonda district, Telangana.The extensive project includes soil investigation, engineering, design, and construction of various infrastructure and civic amenities. These encompass independent Type A and B quarters, multistorey (stilt + 10 floors) residential buildings (Type D, E, and F), along with supporting facilities such as a hospital, school, clubhouse, commercial compl..

Next Story
Infrastructure Transport

Vizhinjam Port Opens, Set to Boost India’s Trade Efficiency

Vizhinjam International Seaport, inaugurated on 2 May 2025, marks a pivotal step in India’s maritime ambitions. Located near Thiruvananthapuram, Kerala, the deep-sea transshipment port is designed to significantly reduce India’s dependence on foreign ports for container transshipment.Positioned just 10 nautical miles from the key east–west shipping corridor and boasting a natural depth of 24 metres, Vizhinjam can accommodate ultra-large container vessels (ULCVs) without extensive dredging. This strategic location is expected to place the port at the heart of global maritime trade, improv..

Next Story
Infrastructure Transport

Port Giant Enters Freight to Challenge Global Logistics Firms

India’s largest private port operator is rapidly evolving from a port-centric business into a comprehensive logistics powerhouse, marking its formal entry into the international freight forwarding sector. This strategic shift is set to redefine cargo movement across India and position the company as a formidable rival to the global logistics multinationals that have long dominated the industry.With a commanding 45.5 per cent share in container handling at Indian ports, and a substantial presence across warehousing, rail freight, trucking, and air cargo, the group’s logistics arm has launch..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?