NHAI's SPV for Delhi-Mumbai Expressway raises about Rs 10,000 crore in FY21

The National Highways Authority of India‘s special purpose vehicle formed to finance the Delhi-Mumbai Expressway has raised almost Rs 10,000 crore in FY21, its first financial year of operations.

DME Developers Ltd, the fully owned SPV formed in August 2020, raised Rs 9,731 crore in debt funding this year, a government official told ET. An amount of Rs 5,000 crore came from the State Bank of India and the remainder from

, and Axis Bank.

“The project will soon tie up with other institutions for the balance debt requirement of Rs 38,733 crore,” the official said.

The 1,300 km greenfield expressway is one of the flagship projects of Bharatmala, India’s highway development programme. The expressway is scheduled for completion by March 2023, with one of the stretches to Jawaharlal Nehru Port Trust getting completed by September 2023.

The total cost of the project is estimated at Rs 87,453 crore, including land acquisition cost of about Rs 20,589 crore.

During the construction period, the total capital expenditure is estimated at Rs 53,849 crore, which will be funded through a combination of debt and equity, with total debt of Rs 48,464 crore.

The SPV will repay the debt made from the toll revenue generated from the expressway, the official said.

Being a high traffic density stretch, DME has monetisation potential of Rs 50,000 crore to Rs 80,000 crore, which makes the project very attractive for lenders, ratings company Crisil said.

NHAI plans to form similar SPVs for other high-value highway and expressway projects, the official said.

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“This will further enhance NHAI’s capability to execute large-scale infrastructure projects of national importance,” the official added.



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