The National Highways Authority of India (NHAI) is planning to raise Rs 60,000 crore in funds by securitising toll collection from four major under-construction NH projects. These projects include three expressways and one economic corridor, and the total capital requirement is estimated at Rs 90,000 crore. NHAI aims to raise nearly two-thirds of the required funds through this securitisation process, reducing the need for upfront government investment.
This approach comes after the successful securitisation of toll in the Delhi-Mumbai expressway project, where NHAI has already raised around Rs 30,000 crore and targets an additional Rs 15,000 crore in the current financial year. Under this securitisation model, the repayment of the principal amount, along with an assured rate of interest, is linked to the toll collection and starts one year after the tolling process begins.
The NHAI has finalised the proposal to establish four self-sustaining special purpose vehicles (SPVs) for these projects and is currently awaiting approval from the finance ministry. Each project will have a dedicated SPV responsible for fund management, operation, and loan repayment. The four highways for which SPVs will be set up are Visakhapatnam-Raipur, Delhi-Amritsar-Katra, Amritsar-Jamnagar, and Chennai-Bengaluru.
Transferring assets to SPVs will reduce the NHAI’s debt, as the liabilities are shifted to the new entities and are not accounted for in the books of the highway authority.
