Financial closure has been achieved for the first part of the Rs 7,566 crore Delhi-Meerut Expressway project, the foundation for which was laid by Prime Minister Narendra Modi last year.
The closure is for the 8.7 km stretch in Delhi, of the 96 km expressway.
"Financial closure has been achieved for first part of the Delhi-Meerut Expressway," National Highways Authority of India (NHAI) Chairman Raghav Chadra said.
"The 14-lane project with six-lane expressway in the Centre, flanked by two four-lane highways on either side is the first scheme under hybrid annuity model (HAM) to achieve the financial closure," he said.
Chandra, along with Welspun Enterprises Managing Director Sandeep Garg, was jointly addressing the media.
Welspun Enterprises has bagged India's first expressway project from NHAI at a total project cost of Rs 841.50 crore.
Of this, 40 per cent will be funded by NHAI under the new Hybrid Annuity Model.
"Balance 60 per cent will be arranged by way of mix of debt/equity of 48:12, 12 per cent being the promoter's contribution and rest will be funded by Punjab National Bank-led consortium of State bank of Hyderabad and Union Bank of India, Garg said.
HAM is a new mode of road building under which government provides 40 per cent grant while the private players arrange for the 60 per cent of the financing.
The NHAI Chief said: "With infrastructure spending going up, Hybrid Annuity Model is an opportunity to fast track highway projects and revive public- private-partnership mode. It will not only improve the traffic flow between the two states, but also contribute to enhancement of economic activity in the region.
Chandra added that the project is likely to be completed ahead of original schedule of 2.5 years and expected in 18-24 months.
After completion, the maintenance of the 8.716 km project for 15 years will be done by Welspun Delhi-Meerut Expressway Pvt Ltd. The project stretches across 8.716 km and is entirely within the city of Delhi.
Once fully operational the 96-km express way will provide a safe and smooth transit for commuters between Delhi and Meerut, the company said.
"The financial closure is the testimony of the trust that our stakeholders have in us. The highway will ensure smooth traffic flow within the capital and the express way, connecting to neighbouring towns, thereby increasing commuting convenience," Garg added.
NHAI had signed the pact for the first phase of project with Welspun in March this year.
Road Transport and Highways Minister Nitin Gadkari has said his ministry's efforts are to complete the expressway project in 400 days as per the Prime Minister's instruction.
While laying the foundation of the project at Noida on December 31, Modi had said the Rs 7,566-crore Delhi-Meerut Expressway will show a way to freedom from pollution.
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