NHAI to offer roads as collateral, in talks with SBI to fund projects

Only SBI has agreed in-principle for the securitisation model

The National Highways Authority of India (NHAI) is expected to raise money by keeping its assets as collateral. The agency is in final stages of discussion with State Bank of India (SBI) to raise funds for its future projects under this new mode.

According to the terms of the agreement, SBI will lend the NHAI 80 per cent of the project value; the rest of the money will be arranged by the highways authority. The loan would be repaid over at least 15 years; the money to repay the loan will be earned through toll revenue from securitised highways.

“The repayment of