NHAI to go ahead with plan to rally Rs 50,000 cr through SPV
All construction risk and land acquisition costs will be borne by NHAI
The National Highways Authority of India (NHAI) will go ahead with a plan to raise Rs 50,000 crore through a special purpose vehicle (SPV) with the National Investment and Infrastructure Fund (NIIF) for the Delhi-Mumbai Expressway project.
A merchant banker will be soon appointed for this. NHAI’s external financing route was approved at a recent meeting with the Union Ministry of Finance with a model likely to be finalised by end of July 2020.
The Rs 50,000 crore raised through NIIF will be spent over the next three years.
In July 2019, NIIF entered into an agreement with NHAI to invest in road projects. The SPV will allow NIIF to take sovereign funds on board and co-invest in projects of NHAI.
All construction risk and land acquisition costs will be borne by NHAI under the SPV. In the first tranche, the construction cost of the 1,320 km long Delhi-Mumbai Expressway will be funded.
NHAI has proposed to use the SPV funding mode for greenfield projects and expressways.