NHAI’s SPV Raises Rs. 10,000 Crore To Fund Delhi-Mumbai Expressway

DME Development, a wholly National Highway Authority of India (NHAI) owned Special Purpose Vehicle (SPV), has been successful in raising Rs. 9,731 crore to partially fund 1,276 Km long Delhi-Mumbai Expressway.

Of the Rs. 9,731 crore, major share of capital, Rs. 5,000 crore, came from State Bank of India, and Punjab National Bank, Axis Bank and Bank of Maharashtra helped raise the rest of capital, NHAI said in a statement.

Delhi-Mumbai Expressway is a greenfield project, to be built at an estimated cost of Rs. 87,453 crore, of which Rs. 53,849 crore will be exclusively spent on construction, raised through combination of debt and equity mix of  including the land acquisition costs estimated at Rs 20,589 crore.

NHAI also said, the project will soon tie up with other institutions, to raise another Rs. 38,733 crore, which will fulfil capital requirements of the project, DME Developers is AAA rated by CRISIL, CARE and India Rating, and has a monetisation protentional between Rs. 50,000 crore to Rs. 80,000 crore.

DME developer’s debt re-payment will be ensured trough toll revenues once project is complete, however, to assure financially stability of the model, NHAI has is already adding five operational toll plazas on the existing Delhi-Mumbai highway under DME developers.

1,276 Km long Delhi-Mumbai Expressway project is one of the flag ships projects of Bharatmala Pariyojna, it will be executed under 48 sub-projects, of which 24 sub-projects are already under construction, while 17 sub-projects are awarded and work will begin soon, the project is expected to be complete by March 2023.

NHAI constituted the SPV in August of last year, solely to diversify resource base, and developed easy and sustainable liquidating approaches.