NHAI to raise Rs 3,000 cr in FY'10 to augment highways sector

NEW DELHI: The National Highways Authority of India plans to raise Rs 3,000 crore in 2009-10 through tax-free bonds to fund the road projects, an NHAI official said.

The highways regulator is also in talks with the Asian Development Bank for a loan of 400 million dollars (about Rs 2,000 crore) to fund road projects.

"We have fixed a target of raising Rs 3,000 crore through tax-free bonds in the financial year 2009-10. The bonds will hit the market very soon," NHAI Member (Finance) Didar Singh told reporters.

"We have already raised Rs 1,700 crore in the last fiscal (2008-09) to strengthen the sector," he said. "Negotiations are also on with the ADB for 400 million dollars to fund infrastructure projects," Singh said.

As many as 60 projects worth Rs 70,000 crore were proposed to be bid out in 2008-09 but NHAI received bids only for 22 projects in the wake of the economic slowdown.

To give thrust to infrastructure financing, the government has allowed state-run India Infrastructure Finance Company to raise Rs 10,000 crore through tax-free bonds by March 2009 to support a public-private-partnership programme of Rs 1,00,000 crore in the core sector, including highways.