NHAI Forms SPVs for Building 22 Expressways

The National Highways Authority of India (NHAI) is gearing to launch a massive infrastructure plan in the country to build 22 expressways with an investment of Rs 3.3 lakh crore. The NHAI authority has decided to form Special Purpose Vehicles (SPVs) to meet this huge fund requirement. The first SPV under this mega development plan will be for Delhi-Mumbai Expressway. The SPV will be wholly owned by the NHAI. For the first SPV formed for Delhi-Mumbai Expressway, the NHAI will infuse Rs 5000 crore of the required Rs 45,000 crore while Rs 40,000 crore will be borrowed from the market. NHAI may adopt one of the two ways in making of SPVs. The authority is likely to form a single SPV for Expressway projects of shorter lengths. These projects will clubbed under a single SPV for Expressway projects having shorter lengths in the range of 50-150 km. However, for longer expressways in the range of 300-400 km and more, there will be a dedicated SPV for each project. Many nationalised banks, pension funding agencies, and even foreign investors have shown keen interest to invest in India's infrastructure sector.