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National Highways Raises Rs 2232 Crore

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BUSINESS STANDARD
Last Updated : Feb 26 2013 | 1:02 AM IST

The National Highways Authority of India (NHAI) has raised Rs 2232.43 crore from market borrowings this fiscal for part-funding the ambitious Rs 54,000 crore national highway development project (NHDP).

"In the year 2002-03, NHAI opened its issue of section 54EC capital gains exempt bonds on May 22, 2002. By the end of July 31 when the issue was closed, NHAI has collected Rs 2232.43 crore," minister of state for road transport B C Khanduri told newspersons here.

NHAI, which raised Rs 656 crore in 2000-01 and Rs 804 crore in 2001-02 through tax-exempt bonds, is targeting another Rs 1,000 crore this fiscal. It opened yet another bonds issue on August 5, carrying a coupon rate of 7.5 per cent.

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The earlier bonds issue carried an interest rate of 8 per cent, Khanduri said adding a total of Rs 10,000 crore is being targeted to be raised through market borrowings to fund NHDP.

NHAI has also finalised a Rs 6,000 crore line of credit from Life Insurance Corporation (LIC), which would carry interest rate equivalent to government securities plus 100 basis points, he said. The 25-year loan from LIC would have a moratorium of 15-years.

NHDP, comprising multi-laning of over 13,000 km of national highways is being part funded from one rupee cess on petrol and diesel which would raise Rs 5,880 crore this year, he added.

Of the Rs 5,880 crore cess likely to be received this year, Rs 2,000 crore would be allocated for national highways, Rs 980 crore for state roads, Rs 2,500 crore for rural roads and Rs 300 crore to railways for construction of rail-over-bridges and level-crossings, Khanduri said.

"NHAI has also received external assistance (World Bank and Asian Development Bank loans) to the tune of Rs 2240 crore during 1999-2000 to 2002-03," he said.

Khanduri said government has approved the first phase of NHDP at a cost of Rs 30,300 crore (at 2000 prices).

Phase-I of NHDP consists of the Golden Quadrilateral project, connecting the four metros of New Delhi, Mumbai, Chennai and Kolkata with four/ six-lane highways, and some portion of the north-south and east-west corridors.

Of the 5,846 km Golden Quadrilateral, four-laning of 1,159 km has been completed while another 4,551 km is under implementation. Except for 84-km Allahabad by-pass, contracts for the rest have been awarded, he said. The golden quadrilateral is targeted for substantial completion by December 2003.


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First Published: Aug 14 2002 | 12:00 AM IST

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