NHAI forms SPV to fast-track Rs 1 lakh cr Delhi-Mumbai Expressway
The National Highways Authority of India (NHAI) on Thursday said it has formed a special purpose vehicle (SPV) to fast-track the Delhi-Mumbai Expressway project. The NHAI is currently implementing about 28,000-km projects under 'Bharatmala Pariyojna' Phase-1. Under this, Delhi-Mumbai Expressway is one of the flagship highways corridors
The National Highways Authority of India (NHAI) on Thursday said it has formed a special purpose vehicle (SPV) to fast-track the Delhi-Mumbai Expressway project. The NHAI is currently implementing about 28,000-km projects under 'Bharatmala Pariyojna' Phase-1. Under this, Delhi-Mumbai Expressway is one of the flagship highways corridors.
"NHAI has proceeded to form a Special Purpose Vehicle (SPV) company for financing, construction and operation of the Delhi-Mumbai 'Greenfield' Expressway," the company said in a statement.
The SPV has been registered by the name of 'DME Development Ltd' and will be wholly owned by NHAI, it said.
"By floating SPV specific to a corridor, the NHAI is aiming at diversifying its resource base and developing a sustainable and self liquidating approach to raise finances," it said.
Spanning 1,275 km, it will be an eight-lane expressway with provision to expand to 12-lanes in the future, with a design speed of 120 km/hr and will be India's longest 'Greenfield Expressway'.
The NHAI said the corridor will be completely access controlled with a closed tolling.
It added a network of 75-way side amenities is also planned on either side of the expressways at an interval of 50 km.
"The project has a capital cost of Rs 82,514 crore which includes land acquisition cost of Rs 20,928 crore. Considering the significance of the project, the authority has decided to invest the full equity and proceed with the development," the statement said.
SPV shall raise debt on its balance sheet, while the NHAI retains the operational control during construction and O&M, it added.
"In addition, the toll on the projects housed in SPV shall be collected by NHAI and SPV shall get the annuity payments without any construction and tolling risks," the NHAI said.
The completion of the expressway is projected by March 2024.
See Zee Business Live TV Streaming Below:
The NHAI said it plans to form similar SPVs for other high value highway projects and added that this will further enhance NHAI capabilities to execute large-scale infrastructure projects of national importance.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
08:51 AM IST