NHAI chairman for New York to address global investors

New Delhi, Sep 21 (UNI) Tasked with executing the gigantic National Highways Development Projects, the NHAI has decided to raise Rs 50,000 crore by 2015 through market borrowings in overseas markets and various other instruments.

As part of the move, National Highways Authority of India (NHAI) Chairman Satyanarayana Dash would be addressing global CEOs and senior institutional investors at the forthcoming 3rd Annual Investment Forum in New York on September 25-26.

Invited to speak on "Development of India's Roads and Highways", Dr. Dash would address over 350 global institutional and direct investors.

''The managers of about 7.5 trillion US dollars will be represented at the event in the form of US pension funds, endowments, foundations and other institutional investors,'' a senior official of NHAI said here today.

NHAI has plans to raise funds through borrowings in the overseas markets and through various instruments such as domestic bonds, LIC loans, term loans from financial institutions and banks, and loans from multilateral agencies like the World Bank and Asian Development Bank.

The Central government has launched major initiatives to upgrade and strengthen the National Highways Development Project (NHDP).

Over the next 10 years, an investment of about 50 billion US dollars is planned, offering enormous opportunities for engineering companies, civil work contractors, professionals and construction equipment manufacturers, the world over.

''Most of the highways sector projects are to be contracted through Public-Private Partnership (PPP). With 100 per cent FDI allowed in the road sector, India has emerged as one of the most attractive destinations for FDI,'' the official said.

India's investment environment is conducive due to factors like flexible operating environment, comprehensive agreements to avoid double taxation with a large number of countries, stable democratic institutions with strong independent legal system, equitable dispute resolution mechanism and a robust economy growing at an average 7-8 per cent.

The NHAI official said a well-structured institutional framework for entrepreneur-friendly environment and assured funding for Highway projects through Single Window clearance and a sound banking network connecting every corner of the country in a seamless grid are other favourable factors.

The PPP projects in the highways sector will get a fillip with the NHAI deciding to embark on projects for six-laning of about 6,500 km of National Highways on the DBFO basis at an estimated cost of 9.16 billion dollars.

Further, upgradation and 4-laning of 10,000 km of National Highways on Build-Operate-Transfer (BOT) basis wil be accried out at an estimated cost of 14.5 billion dollars.

The plans also include strengthening and widening of 20,000 km of National Highways to 2-lane with paved shoulders at a cost of 6.2 billion dollars and construction of expressways of about 1,000 km at a total projected cost of 3.7 billion dolars on the DBFO basis.

The NHAI has also planned ring roads, bypasses, grade separators and flyovers in several important cities (on BOT basis) at a cost of 3.7 billion dollars.

''Given the unmatched investment opportunity offered, contractors and supervision consultants from around 25 countries are already working on NHAI projects in the country, helping implement one of the world's largest highways projects,'' he said.

UNI/SKS KR HT1630