NHAI to raise Rs. 3,600 cr. through market borrowings

NEW DELHI, MAY 4. The National Highway Authority of India (NHAI) will raise Rs. 3,600 crores from market borrowings during the current fiscal to part-finance the Rs. 58,000-crore National Highway Development Project (NHDP).

"We have set a target of raising Rs. 3,600 crores through market borrowings during 2001-02. The first tranche of bonds issue for the fiscal would hit the market soon," the NHAI Chairman, Mr. Deepak Dasgupta, said here today.

The forthcoming bonds issue, which would be privately placed, would be on tap (without any limit) and would carry a coupon rate of around 9 per cent, he said, but declined to give any further details including timing.

Targetting to raise Rs. 13,800 crores over the next two to three years, the NHAI had raised about Rs. 670 crores last fiscal. It plans to raise Rs. 6,200 crores in 2002-03 and the balance in the next fiscal.

The NHAI had raised Rs. 500 crores in its maiden issue in September-October 2000 and managed another Rs. 170 crores before the close of 2000-01 fiscal.

Mr. Dasgupta said the World Bank was likely to sanction a $500 million loan for the project by June.

"Negotiations are on for the second tranche of World Bank loan that will be utilised for four/six lanning of Delhi-Calcutta Highway. The loan is likely to come through by June," he said.

Another $250-300 million loan was also being negotiated with the Asian Development Bank.

While the World Bank's first tranche of $516 million loan, released in June last year, would be used for four/six lanning of national highway between Agra (in Uttar Pradesh) and Barakar (in Bihar), the second tranche would be spent for similar purpose for the remaining stretches of road on the Delhi-Calcutta National Highway (NH-2), Mr. Dasgupta said.

Besides the $516 million loan, the NHAI has already got a $180 million loan from the Asian Development Bank for four/six lanning of the National Highway between Surat and Manor in Maharashtra.

The Government hopes to mop up up to $5 billion loan for NHDP, comprising Qolden Quadrilateral Project linking the four metros of Delhi, Mumbai, Chennai and Calcutta and North-South corridor joining Kashmir and Kanyakumari and East-West corridor connecting Silchar and Porbandar with four/six lane highways, from the World Bank, ADB and Overseas Economic Cooperation Fund (OECF) of Japan, he added.

- PTI

Send this article to Friends by E-Mail

Section  : Business
Previous : Bullion rates
Next     : Sensex ends with moderate gains