01 May 2020
VIJAY AGRAWAL writes on how RBI’s reduced interest rate will impact HAM project developers.
The National Highways Authority of India (NHAI) is the nodal agency for development of highways in India, and currently manages 2 per cent of the road network transporting 40 per cent of the traffic. The authority, under the leadership of Union Minister Nitin Gadkari, has unveiled the Bharatmala Pariyojna with a capex budget of Rs.5.4 trillion. NHAI has awarded majority of the projects under the engineering, procurement, construction (EPC) or hybrid annuity model (HAM) since 2014. This has increased the financial burden on NHAI. According to ICRA, the table below shows the rating of the past three years’ debt: