(FE)
Facing a fund crunch to execute its ambitious highway development programme, the National Highways Authority of India (NHAI) may soon get the go-ahead from the Cabinet to explore options like launch of an infrastructure investment trust (InvIT) and securitisation of toll receipts. The Cabinet may also give its approval soon to make NHAI’s asset monetisation programme through the toll-operate-transfer (ToT) route less cumbersome.
Apart from funding highways, NHAI is in dire need of funds to finance its burgeoning debt which reached Rs 1.8 lakh crore by the end of March this year. Analysts estimate NHAI’s borrowings to go up to Rs 3.31 lakh crore by FY23, if NHAI is to fund the construction of around 35,000-km highway projects, including the first phase of 24,800-km Bharatmala programme and the balance road works under the NHDP, in six years starting 2017-18.
NHAI needs additional funds as it is increasingly awarding projects though the Engineering, Procurement and Construction (EPC) route, where it is to bear all the expenses, as it failed to award projects through the traditional Build-Operate-Transfer (BOT) and less-taxing Hybrid Annuity Model (HAM).
