Source | https://economictimes.indiatimes.com : By Rajat Arora
NEW DELHI: The road transport and highways ministry will raise around Rs 1 lakh crore through offbudgetary mechanism in the next financial year to fund its ambitious highway construction programme.
The amount would be raised through the National Highways Authority of India (NHAI) bonds, institutional financing from Life Insurance Corporation of India (LIC), Employee Provident Fund Organisation (EPFO) and other market borrowings.
The ministry would also raise money through the highway monetisation programme under the Toll-Operate-Transfer scheme and also through the upcoming Infrastructure investment funds (InvITs) of NHAI.
“We’ll be raising nearly 1 lakh crore from the market in the next financial year. Around 70% of it would come from bonds and other borrowings and the remaining will be from the highway monetisation programme,” Deepak Kumar, chairman of NHAI, told ET.
The amount is almost double the amount that NHAI has raised in the current financial year. In the current financial, the Authority has already raised Rs 47,000 crore.
The proposal for NHAI InvITs is likely to be taken up for approval by highway authority’s board on March 15. The announcement of NHAI InvITs was made in the recent budget speech of the finance minister.