NHAI announces list of stalled road PPPs in need of funding

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NHAI announces list of stalled road PPPs in need of funding

The National Highways Authority of India (NHAI), an agency of the Government of India, responsible for a road network of over 70,000 km, has identified 15 road projects that need funds to be completed.

The list includes 12 toll projects on build, operation and transfer (BOT) model and three annuity projects. Although InfraPPP did not have access to the full list. According to sources, the list also would also include the following projects:

  • Six laning of Kishangarh - Udaipur - Ahmedabad Section of NH 76, 79, 79A and 8 BOT (Toll)
  • Four Laning of the Patna-Buxar stretch of NH 30 (Km 0 -124.85) on BOT (Toll) basis
  • Four Laning of Parwanoo- Shimla Section of NH-22 (Km. 67 - 156.5) on DBFOT (Toll) basis
  • Six Laning of Jalandhar -Amritsar Section of NH-1 on DBFOT (Annuity)
  • Four-laning of Bahrampur-Farakka stretch of NH 34 (Rs10.82 billion - US$166.8 million),
  • Six-laning of Gurgaon-Kotputli-Jaipur highway under NH-8 (Rs30.39 billion - US$468.5 million)
  • Four-laning of Gwalior-Jhansi stretch on NH 75 (Rs4.24 billion - US$65.3 million).

According to sources, the projects could receive fund through a loan basis at bank rate of 2%. NHAI has plans to develop a third party evaluation mechanism to determine the eligibility of the projects and the extent of bridge fund required to finish them.

Ratings and analysis firm CRISIL informed in a report that the equity and cost overrun support required for under-construction BOT projects is about Rs285 billion, of which Rs 93 billion could potentially be raised through stake sales by sponsors at a special purpose vehicle-level as well as raising equity through capital market.

The government has also estimated that it will need a total of Rs4,000 billion including borrowings of about Rs1,530 billion over the following four years to finish the stalled projects under its flagship road building programme.

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