NHAI, SBI in talks to monetise highways |
The National Highways Authority of India or the NHAI is in talks with India`s leading lending bank, the State Bank of India, to monetise road projects with high traffic density as it explores different modes to meet its Rs 75,000¬ crore funding requirement for the current fiscal year. According to sources, instead of monetising assets to private players, NHAI will get the money directly from banks. It will be like toll securitisation. The only difference is that in toll¬-operate--transfer mode or the TOT mode — the highways authority is giving it to funds with maintenance and toll collection obligation. SBI, being a bank, will be giving loan to NHAI, which will be paid back through a special purpose vehicle (SPV), or through specific project requirements. Last week, road transport and highways minister Nitin Gadkari said he was in talks with a “big bank” to monetise around 50 projects of NHAI to raise 7.2 billion dollars. Similar to the TOT mode of asset monetisation, NHAI will also monetise its projects to banks in exchange for a lump sum amount, while keeping the tolling and maintenance rights with itself.
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