LIC to invest Rs 30,000 crore in NHAI via long-term bonds

The national highways authority is tapping state-owned Life Insurance Corporation of India (LIC) for a funding of Rs 30,000 crore in the current financial year.

LIC has given in-principle approval to subscribe to the bonds issued by National Highways Authority of India (NHAI), a government official aware of the matter told ET.

“We need long-term funds (for NHAI), and this funding arrangement will be for a span of 30 years,” said the official, requesting not to be named.

“The advantage of insurance funds is that these are long-term,” the official said, adding that given the gestation period of road projects is also long, LIC is a sensible choice. “Modalities for the arrangement are being worked out. We will see how we can negotiate the coupon rates,” the official said.