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SBI Mulls Lending INR 35,000 crore to NHAI for Highway Projects - Mr Rajnish Kumar

Infra News - Published on Wed, 11 Sep 2019

Image Source: Business Line
PTI, citing Mr Rajnish Kumar chairman of State Bank of India reported that SBI is “examining” a proposal from the National Highways Authority of India to lend as much as INR 35,000 crore through securitisation of toll receipts to part-fund highway projects this year. We are examining NHAI’s proposal to raise funds through securitisation of toll proceeds. We are looking at INR 30,000-35,000 crore, but not all of that will be funded by SBI. NHAI has huge cash flows. We are ready to give money to whoever needs it. It depends on how much and which route/model needs money.

A top LIC official said part of NHAI borrowings this fiscal could also be funded by LIC and EPFO. During the last three years, the state-run insurer has lent about INR 25,000 crore to NHAI for a 30-years tenure, adding that being an insurer with long-term funds, LIC was not handicapped by the asset-liability mismatch which banks typically face in funding long-gestation infrastructure projects.

Mr Nitin Gadkari, Road Transport & Highways Minister said that NHAI will securitise/monetise toll receipts from projects and raise funds. We have prepared a proposal to raise long-term loans by securitising toll proceeds. My proposal was for 30 years, but the SBI chairman has reduced it to 20 years. We can raise INR 100,000 to INR 150,000 crore from SBI alone and from other banks also we can go for a similar arrangement. It is a secured thing, NHAI has AAA rating.

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Posted By : Sanju Moirangthem on Wed, 11 Sep 2019
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