New Delhi: To finance its various projects, National Highways Authority of India (NHAI) plans to raise Rs55,000 crore in the current fiscal, government said on Monday. It will raise Rs20,000 crore through Employees’ Provident Fund Organization (EPFO), Rs8,500 crore through Life Insurance Corporation (LIC), Rs5,000 crore each through Masala and 54-EC bonds and Rs16,500 crore from the market, minister of state for road transport and highways Mansukh L. Mandavia told Rajya Sabha on Monday in a written reply.
“The coupon rate for the fund-raised/to be raised from EPFO is based on 10 days moving average of 25 years G-Sec plus 24 bps,” Mandaviya said. LIC has conveyed in-principle approval for subscribing to NHAI Bonds of Rs25,000 crore to be drawn in three financial years till March 2019, subject to maximum of Rs8,500 crore in one fiscal, he said.
LIC has offered coupon rate of 30 years maturity at G-sec rate plus 50 bps per annum and the reference G-sec rate shall be 15 working days average annualized G-sec rate. The minister said NHAI has a common bank account in which all the funds raised/received are kept and the expenses are incurred from this account towards development, maintenance and management of National Highways entrusted to it by government.