Centre to tap capital market to raise funds for road projects

The central government will approach the capital market in October 2022 to raise around Rs.25 billion to fund three road projects, as per a government official. Funds will be raised through Infrastructure Investment Trusts (InvITs). Recently, the National Highways Infra Trust, the InvIT of the National Highways Authority of India (NHAI), raised Rs.12.2 billion from investors in its follow-on offer. The latest issue involved addition of three toll roads to the current portfolio of the InvIT. These include the 32.9 km Agra Bypass stretch in Uttar Pradesh, 75.3 km long Shivpuri-Jhansi stretch in Madhya Pradesh and 138.15 km Borkhedi-Kelapur stretch in Maharashtra. These assets have an enterprise value of approximately Rs.35 billion.

References
1. https://www.business-standard.com/article/current-affairs/govt-to-raise-rs-2-500-crore-for-three-road-projects-through-capital-market-122100300182_1.html
2. https://www.business-standard.com/article/economy-policy/nhai-invit-raises-rs-1-217-crore-from-investors-adds-three-roads-122100301094_1.html