NHAI, SBI in talks to monetise highways

Last week, road transport and highways minister Nitin Gadkari said he was in talks with a “big bank” to monetise around 50 projects of NHAI to raise Rs 50,000 crore.

New Delhi: The National Highways Authority of India (NHAI) is in talks with State Bank of IndiaNSE 0.38 % to monetise road projects with high traffic density as it explores different modes to meet its Rs 75,000-crore funding requirement for the current fiscal. “The idea is, instead of monetising assets to private players, we get the money directly from banks,” a government official told ET.

NHAI, SBI in talks to monetise highways

It is like toll securitisation, the official said.

“The only difference is in TOT (toll-operate-transfer) — we are giving it to funds with maintenance and toll collection obligation. SBI, being a bank, will be giving loan to NHAI, which will be paid back through a special purpose vehicle (SPV), or through specific project requirements,” the official said.

Last week, road transport and highways minister Nitin Gadkari said he was in talks with a “big bank” to monetise around 50 projects of NHAI to raise Rs 50,000 crore. He, however, did not reveal the details.