India to raise Rs10,000 crore debt for building highways

India will soon raise Rs10,000 crore ($1.9 billion) through a public debt issue for funding its ambitious national highways project, Union Road Transport & Highways Minister CP Joshi said here Wednesday.

“The finance ministry has allowed us to raise Rs10,000 crore through debt bonds for funding construction of highways across the country,” Joshi told reporters on the margins of a trade event.

The funds will be raised by the state-run National Highway Authority of India (NHAI) through tax-free infrastructure bonds within a month.

“The proposed fund-rising will be sufficient for the highway projects under execution. We will raise more funds as we go for more such projects,” Joshi said after unveiling the sixth international construction equipment industry trade fair Excon 2011 on the outskirts of this southern tech hub.