Nhai Plans Rs 4000 Crore Lic Credit In 02-03

The National Highways Authority of India (NHAI) plans to draw around Rs 4,000 crore next fiscal by way of a line of credit from Life Insurance Corporation (LIC) to meet its internal and extra budgetary resources (IEBR) target of Rs 6,200 crore for 2002-03.

NHAI would raise the remaining amount slightly over Rs 2,000 crore by way of tax-free bonds issue under sections 54 EC of the Income Tax Act, taxable bonds under Section 88 and other debt instruments. The money would be utilized to part-finance the ongoing Rs 54,000 crore the National Highway Development Project (NHDP).

NHAI, which is implementing the NHDP, is expected to cross the IEBR target of Rs 3,600 crore set for the current fiscal, according to officials. While NHAI has so far raised nearly 1,250 crore by way of privately placed long-term capital gains exempt bonds issue over the last two years, it has earmarked an amount of Rs 2,300 crore to annuity projects awarded this fiscal.

 

NHAI has targeted raising Rs 13,800 crore over the project period till 2003-04, of which Rs 3,600 crore was apportioned for the current fiscal. The Authority plans to raise Rs 6,200 crore next fiscal and the balance in the next fiscal.

NHAI had raised Rs 500 crore in its maiden issue in September-October 2000 and managed Rs 156 crore before the close of fiscal 2000-01. An amount of Rs 580 has been raised so far this fiscal, officials said.

NHDP entails four-laning of over 13,252 km of national highways. NHAI expects the Rs one cess being levied on both petrol and diesel to accrue Rs 20,000 crore till 2007, the completion date of NHDP. Another Rs 20,000 crore is expected from multilateral funding agencies while Rs 13,800 crore would be raised from domestic market borrowings while the remaining was to come from private sector participation.