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

17 Dec 2020 CW Team

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.

Technology

31 Jul 2026

Digital engineering resolves issues before money is deployed onsite

Construction is moving from drawings and delays to data-led delivery. Varunkumar Sagarkar, Director, shares how Desapex is helping developers and contractors make BIM, ISO 19650 and digital twins work on real projects.How is Desapex helping construction companies move from traditional project delivery to digital-first execution?When we started, the first challenge was capacity. We saw strong adoption of digital technology in markets such as the Middle East, Europe and the US, but India lacked the depth of resources required to deliver those services at scale. Over time, we also saw many failed..

CASE India appoints Sachin Tare to lead manufacturing

CASE Construction Equipment, a brand of CNH, has appointed Sachin Tare as Director – Manufacturing to lead manufacturing operations at its Pithampur facility near Indore, Madhya Pradesh. In his new role, Tare will focus on improving operational efficiency, quality and productivity while supporting the company’s growth in India and global markets.Tare brings over three decades of experience across manufacturing, supply chain, operations and business transformation in the engineering and automotive sectors. He spent nearly 30 years with Mahindra & Mahindra, where he held leadership posit..

Bondada Enters Defence Sector with KCS Engineering Acquisition

Bondada Engineering Limited, a renewable energy and infrastructure solutions company, has announced its entry into the defence and aerospace sector through its subsidiary Bondada Dynamics Private Limited (BDPL), which has entered into a Business Acquisition Agreement to acquire a 75% ownership stake in KCS Engineering Solutions.As part of the strategic expansion plan, KCS Engineering Solutions will be converted into a private limited company, proposed to be named BKCS Technologies Private Limited, with the “B” representing Bondada. Following the conversion, BKCS Technologies will operate a..