Special Purpose Vehicle Of NHAI Executing Delhi - Mumbai Expressway Raises Rs 9,731 Crore To Fund The Project
DME Developers (DMEL), a fully owned special purpose vehicle (SPV) of the National Highways Authority of India (NHAI), has raised Rs 9,731 crore to part-fund the greenfield Delhi - Mumbai expressway.
“The major share of the 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.
NHAI said that the project will soon tie-up with other institutions for the balance debt requirement of Rs 38,733 crore. The expressway is scheduled for completion by March 2023, reports Financial Express.
Recently, DME Developers Ltd. (DMEL) which is executing the Delhi Mumbai Expressway project has received AAA rating from CRISIL, CARE and India Rating.
Through this SPV, NHAI has planned to diversify its resource base and develop a project specific sustainable and self-liquidating approach to raise finances.
Delhi- Mumbai Expressway is a flagship greenfield project under ‘Bharatmala Pariyojna’.
The project is being executed under 48 sub-projects, out of which 17 are Hybrid Annuity Model projects (Vadodara-Mumbai segment) and 31 are under EPC Model (Delhi- Vadodara segment).
Of these 48 sub-projects, 27 are under construction, 17 are awarded & work to be started and the rest are under process for awarding.
At nearly 1,320 km, it will be India’s longest expressway and will reduce travel time between Delhi and Mumbai from 24 hours to 13 hours. The new highway is being built at an estimated cost of Rs 103,000 crore.
The highway will start near Gurugram at Sohna and terminate at Mumbai. The expressway will cut the distance between the national and financial capital of India by 280 km.
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