Highway Authority on a mega mop-up drive this fiscal

The National Highway Authority of India (NHAI) is planning to raise Rs5,000-crore to Rs7,000-crore in the current fiscal for funding road projects.
J.N. Singh, Member-Finance, NHAI, told reporters in Mumbai that from the investments Rs2,000-crore to Rs3,000-crore will be raised through capital gain bonds.


To attract retail investors, NHAI has reduced the minimum number of bonds for subscription from five bonds with a face value of Rs10,000 each to one bond of Rs10,000.


“We would aim for a higher amount, say, Rs 3,000 crore, but if we get Rs 2,000 crore, it is fine,” Mr Singh said during the press briefing.


He was speaking on the sidelines of a meet organised by the Highways Authority with fund mangers, merchant bankers, investors and rating agencies to appraise them its fund raising programme.


According to NHAI Chairman Brijeshwar Singh the authority will need to raise Rs10,000-crore to Rs15,000-crore annually for the next 15 years to finance road projects.


NHAI will be awarding contracts to build 12,000-km roads in 2010-2011 through approximately 91 projects, which is more than double of what it did last year. Contracts for 1,600-km will be awarded in the month of May itself, added the Chairman.