NHAI to issue land bonds for acquisition from states, other stakeholders

New mechanism will postpone upfront payment

The National Highways Authority of India (NHAI) is planning to issue land bonds to pay for acquiring land from states or other stakeholders — as part of a funding mechanism amid escalating land acquisition and compensation cost. Through this mechanism, the NHAI will not have to make upfront payments for land acquisition.

“Land bonds are expected to be interest-bearing instruments but the issues as to whether they would be listed and how the interest component would be finalised are being worked out,” an official said. The financing model is part of a larger plan to open a revenue stream for the