NHAI to raise Rs 55K crore via EPFO, LIC, bonds this fiscal

NEW DELHI: To finance its various projects, National Highways Authority of India ( NHAI) plans to raise Rs 55,000 crore in the current fiscal, government said today.

It will raise Rs 20,000 crore through EPFO, Rs 8,500 crore through LIC, Rs 5,000 crore each through Masala and 54-EC bonds and Rs 16,500 crore from the market, Minister of State for Road Transport and Highways Mansukh L Mandavia told Rajya Sabha today in a written reply.

"The coupon rate for the fund raised/to be raised from EPFO is based on 10 days moving average of 25 years G-Sec plus 24 bps," Mandaviya said.

LIC has conveyed in-principle approval for subscribing to NHAI Bonds of Rs 25,000 crore to be drawn in three financial years till March 2019, subject to maximum of Rs 8,500 crore in one fiscal, he said.

LIC has offered coupon rate of 30 years maturity at G-sec rate plus 50 bps per annum and the reference G-sec rate shall be 15 working days average annualised G-sec rate.

The minister said NHAI has a common bank account in which all the funds raised/received are kept and the expenses are incurred from this account towards development, maintenance and management of National Highways entrusted to it by government.