NHAI to raise Rs 3,000 cr in FY10

The National Highways Authority of India (NHAI) plans to raise Rs 3,000 crore in 2009-10 through tax-free bonds to fund the road projects, an NHAI official said.

The highways regulator is also in talks with the Asian Development Bank for a loan of $400 million (about Rs 2,000 crore) to fund road projects.

"We have fixed a target of raising Rs 3,000 crore through tax-free bonds in the financial year 2009-10. The bonds will hit the market very soon," NHAI Member (Finance) Didar Singh told PTI.

"We have already raised Rs 1,700 crore in the last fiscal (2008-09) to strengthen the sector," he said.

"Negotiations are also on with the ADB for $400 million to fund infrastructure projects," Singh said.

As many as 60 projects worth Rs 70,000 crore were proposed to be bid out in 2008-09 but NHAI received bids only for 22 projects in the wake of the economic slowdown.

To give thrust to infrastructure financing, the government has allowed state-run infrastructure financing company to raise Rs 10,000 crore through tax-free bonds by March 2009 to support a public-private-partnership programme of Rs 1,00,000 crore in the core sector, including highways.