NHAI To Raise Funds From Market To Build 14000 Km (05-Mar-2010)
The National Highways Authority of India (NHAI) is eyeing to raise funds from Institutional and Market Borrowings to construct 14,000 km highway projects trough Viability Gap Funding (VGF) and Annuity (BOT/Build-Operate-Transfer) mode in the next financial year.
A senior official at NHAI said the company is looking to raise Rs. 3,455 crore through institutional and market borrowings in 2010-11.
In 2010-11, of the plan outlay of Rs 17,006 crore, Rs 9,471 crore will come in as equity. Tax-free infrastructure bonds will also be issued to raise another Rs 4,000 crore. The company will collect in Rs 3,455 crore through market and institutional borrowings and Rs 80 crore through other source.
The official said because of the issues with concession agreement, not many projects could be awarded in 2009-10. With policy matters now sorted out, things have picked up and NHAI needs more money to keep operating in the next year.
The current financial year''s total plan outlay of Rs 11,472 crore has been provided largely from government equity of Rs 7,400 crore and money raised from bonds/debentures. The roads authority could not utilize 13.6 % of the Rs 8,578 crore allocated in Budget 2009-10.
Allocation to NHAI next year has been increased by 27.9 % as against the current year''s revised estimates to Rs 9,471 crore. The allocation for road transport ministry had been raised by more than 13 % to Rs 19,894 crore from Rs 17,520 crore in this Budget.
In its work plan for the next financial year, NHAI intends to award 92 projects covering 11,721 km valued at Rs 100,000 crore, along with projects to construct another 2000 kms from the current financial year.
The authority had a target to award 126 projects covering 11,928 km worth Rs 100,000 crore in the current financial year. Forty-three projects for 7000 km of highways could be awarded.
NHAI will develop 65 % of the total number of projects to be awarded on BOT (toll) mode. In this, toll will be collected by the concessionaire over a specified period of time. 20 % of the projects will be executed on annuity model, the government will pay it money every six months and collect toll. The remaining projects would be executed by the NHAI on EPC (Engineering, Procurement and Construction) basis.
Top News Today
 Godrej Properties, Mumbai based real estate developer launched its new residential project Godrej Alpine in Mangalore. It aims to complete 499-apartment Godrej Alpine for occupation in 36 months. Godrej
 Mahindra & Mahindra, auto major has stopped the second phase of booking for its latest sports utility vehicle XUV500. It has received over 25,000 orders in a period of 10 days from January 25 to February
 Reliance Power, the Anil Ambani group company's 2,400-MW Samalkot plant in Andhra Pradesh is likely to be ready for electricity generation this fiscal. It will install six gas turbines at the plant having
|
International Stock News
 The US markets rose on Monday, sending the Dow industrials to their highest close since 2008, as Greece's government made progress on measures to secure international aid. Also, a Labor Department report
 The US markets made a mix closing on Thursday, as a drop in jobless claims fueled optimism about the economy and investors looked to the next day's employment report as the next indicator of the economic
 The US markets made a mixed closing on Tuesday, with the indices mostly slipping after US economic data failed to live up to expectation. The reports showed that American consumer confidence trailed estimates
|
|
|