NHAI SPV raises Rs 9,731 cr for Delhi-Mumbai expressway

NHAI SPV raises Rs 9,731 cr for Delhi-Mumbai expressway

The total estimated cost of the Delhi-Mumbai Expressway project is approximately Rs 87,453 crore, with the land acquisition cost being around Rs 20,589 crore.

The National Highways Authority of India (NHAI) on Tuesday said that its wholly owned Special Purpose Vehicle (SPV) DME Developers (DMEL) has raised `9,731 crore to fund the 1,276-km, greenfield Delhi-Mumbai Expressway.

“The largest portion of funding came from the largest bank in India, the State Bank of India, which contributed Rs 5,000 crore. Punjab National Bank, Bank of Maharashtra and Axis Bank are the other investors in the SPV, ”NHAI said in a statement.

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

“The project will soon tie up with other institutions for the remaining loan requirement of Rs 38,733 crore. NHAI said that the expressway is scheduled to be completed by March 2023.

DME Developers have recently received AAA ratings from CRISIL, CARE and India Ratings.

Delhi Mumbai Expressway SPV loan repayment will be done from the toll revenue generated from the expressway.

To ensure the viability of the model, NHAI has decided to add five toll plazas on the existing Delhi-Mumbai highway as a sweetener for the SPV.

According to Crisil, the DME has a demonetization capacity of between Rs 50,000-80,000 crore.

The Delhi Mumbai Expressway is a major greenfield project under the ‘Bharatmala Yojana’.

The project is being executed under 48 sub-projects, out of which 17 are hybrid annuity model projects and 31 are under the EPC model.

Of these 48 sub-projects, 24 are under construction, 17 have been awarded and work is to be started and the process of awarding the rest of the award is underway.

News Source: FinancialExpress

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