+
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

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?