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NHAI plans mega infrastructure project worth Rs 3.3 lakh crore, to form SPVs to develop 22 expressways

The NHAI authority has also decided to form Special Purpose Vehicles (SPVs) to meet this huge fund requirement, sources told Zee Media. The first SPV under this mega development plan will be for Delhi-Mumbai Expressway.

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The National Highways Authority of India (NHAI) is gearing to launch a massive infrastructure plan in the country to build 22 expressways with an investment of Rs 3.3 lakh crore. 

The NHAI authority has also decided to form Special Purpose Vehicles (SPVs) to meet this huge fund requirement, sources told Zee Media.

The first SPV under this mega development plan will be for Delhi-Mumbai Expressway. The SPV will be wholly owned by the NHAI. Sources said it would be easier for the SPV to get lending from financial institutions, banks, insurance firms, and pension funds as NHAI is a sovereign entity.

NHAI may adopt one of the two ways in making of SPVs. The authority is likely to form a single SPV for Expressway projects of shorter lengths. These projects will clubbed under a single SPV for Expressway projects having shorter lengths in the range of 50-150 km, sources said. 

However, for longer expressways in the range of 300-400 km and more, there will be a dedicated SPV for each project, they added.

For the first SPV formed for Delhi-Mumbai Expressway, the NHAI will infuse Rs 5000 crore of the required Rs 45,000 crore while Rs 40,000 crore will be borrowed from the market.

Many nationalised banks, pension funding agencies, and even foreign investors have shown keen interest to invest in India's infrastructure sector, sources added.

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