The National Highways Authority of India (NHAI) has raised Rs 8,500 crore from Life Insurance Corporation of India (LIC) for 30 years at an interest rate of 7.22% per annum. The funds will be used to construct bypasses on national highways and road expansion projects. The NHAI is seeking over Rs 1 lakh crore from the state-owned insurer to be disbursed in tranches over five years. Another government body, the Employees’ Provident Fund Organization, has subscribed to NHAI bonds worth Rs 10,000 crore for 25 years at 8.03% interest. The ministry was in talks with LIC and EPFO to raise funds for highway expansion projects. The finance ministry has allowed NHAI to borrow Rs 50,000 crore through bonds in the current financial year. NHAI has bid out 5,000 km of roads worth about Rs 75,000 crore in the first eight months of the current financial year. This year’s target of more than 7,000 km of roads worth about Rs 1 lakh crore will be the highest ever awarded by NHAI. The finance ministry allocated Rs 59,000 crore, including Rs 2,100 crore as additional grant, to the roads ministry for current year. The authority is also looking to raise Rs 7,000 crore through masala bonds to be listed on LSE.
Image source: team-bhp.com