The National Highways Authority of India (NHAI) will initially raise ₹15,000-20,000 crore in its maiden InvIT offer and then go for a larger round, depending on the response it receives from investors, Union minister Nitin Gadkari said.
NHAI’s InvIT offer, expected in the months ahead, is part of the government’s plans to tap alternative sources of financing to boost public spending in the roads and infrastructure sector amid declining private sector interest in the build, operate and transfer model, where the entire initial cost is borne by them.
In addition to the InvIT offer, the government has firmed up funds from domestic lenders to raise money for long-gestation projects, Gadkari, Union minister for road transport and highways, said in an interview on Monday. “We are working closely with the Reserve Bank of India on this issue and I just spoke to governor Shaktikanta Das and he has assured that banks will fund projects up to 30 years subject to financial viability,” he said.
“This is for the total cost of projects, land acquisition, cost of construction, against toll receipts. State Bank of India has assured us ₹50,000 crore already.”