NHAI To Raise Rs. 50K Crore Via SPV Route With National Investment And Infrastructure Fund (NIIF)

The National Highways Authority of India (NHAI) plans 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. The Finance Ministry approved this external financing avenue. Once the model is finalised by July end.

It is forecasted that the Coronavirus pandemic will stretch Government spending and therefore alternate investment needs to be explored. The Infra financing gaps needs to filled.

NHAI plans to spend Rs 50,000 crore raised through NIIF over a period of three years. Once this model is established it cab ne replicated for other Infra projects.

NIIF last July had entered into an agreement with the NHAI to invest in road projects. The SPV will allow NIIF to take sovereign funds on board and can co-invest in projects of the 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, according to the finance ministry officials.