NHAI ropes in experts for developing new financing approaches in current financial condition
NEW DELHI: The National Highways Authority of India (NHAI) has started working on new strategies to tap long-term investment from different sources including from insurance, pension and foreign funds and also to get soft loan from multi-lateral agencies such as World Bank, ADB and New Development Bank (earlier known as BRICS bank).
The intense exercise has started amid clear indications of fall in toll revenue, reduction in fuel cess and subdued response to the monetisation of completed highway projects, the three key sources for NHAI’s finances.
An NHAI official said they have engaged a team of experts “recommended by World Bank” and another external expert has been appointed as advisor (finance) who has worked in a major public sector insurance company.
Sources said the group of experts will have the responsibility to carry out background review, compile data and will be tasked with “developing new financing approaches in the current financial horizon”. They added the experts will identify the required investment and potential investors and will also provide credit risk mitigation support.
“Now it’s all the more important to study all the projects and what best we can do to continue our highway development without facing financial burden,” said an official.
Despite government’s effort, private investment has not revived in this sector and NHAI has been fully funding highway development projects in most of the cases.
