NHAI projects Rs 28,000 cr expenditure

The National Highways Authority of India (NHAI) has projected an expenditure of Rs 28,000 crore for 2008-09 to complete its ongoing projects and the new projects announced under the National Highways Development Project (NHDP).

To meet this projected expenditure, the authority is in advanced stages of talks with the Asian Development Bank (ADB) for a loan of Rs 400 crore.

This is in addition to the Rs 1,900 crore it is expecting from multilateral institutions through the central government's budgetary allocation. Rs 14,000 crore is expected to be contributed by the private sector through public-private partnerships (PPPs) while Rs 7,000 crore is projected to come from fuel surcharge.

Besides, the NHAI is planning to refloat the 54 EC tax-free capital gains bond for 2008-09 with a ceiling of Rs 3,700 crore. NHAI officials say the new 54 EC tax-free bonds will be launched once the Finance Act is passed in Parliament.

In the current financial year, the NHAI has managed to mop up more than Rs 200 crore through the 54 EC bonds. Officials expect it to mop up nearly Rs 300 crore by the end of the current financial year.

Didar Singh, member (finance committee), NHAI, said: "We are quite comfortable with our financial position to meet all the requirements of the various projects under implementation."

Some ongoing projects that are expected to be completed in 2008-09 include the 56.25-km Garhmukteshwar-Muradabad expressway, the 32-km Chennai bypass, the 15-km Chennai-Ennore expressway and the 14.35-km Jawaharlal Nehru Port (phase-II) project.

In 2005, the Committee on Infrastructure had prepared a comprehensive plan envisaging a mammoth investment of Rs 2,20,000 crore under the NHDP on concessions or contracts to be awarded by 2012.

According to the plan, projects under second, third and fifth phases of the NHDP are expected to be completed by December 2012, while concessions or contracts for fourth, sixth and seventh phases would be awarded by December 2012 and work completed by December 2015.