The National Highways Authority of India (NHAI) said on Tuesday that its special purpose vehicle or SPV, DME Developers (DMEL) has raised ₹9,731 crores to partially fund the Greenfield Delhi-Mumbai Expressway spanning 1,276 kilometres.
“The major share of the funding came from the largest bank in India, the State Bank of India, which contributed ₹5,000 crore. Punjab National Bank, Bank of Maharashtra and Axis Bank are the other investors in the SPV,” a statement by the NHAI said.
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The overall cost estimation for the Delhi-Mumbai Expressway project is around ₹87,453 crore which includes land acquisition costs amounting to ₹20,589 crores. The capital expenditure during the construction period is estimated to be ₹53,849 crores which will reportedly be funded via ₹48,464 crores in debt and equity.
“The project will soon tie-up with other institutions for the balance debt requirement of ₹38,733 crore. The expressway is scheduled for completion by March 2023,” the NHAI added.
Also read - Delhi-Mumbai Greenfield Expressway Work In Full Swing, To Be Ready By March 2022
The debt repayment for the Delhi-Mumbai Expressway project will be made through the toll revenue generated on the expressway. In order to make the idea feasible in the long term, NHAI has planned to add five running toll plazas on the current Delhi-Mumbai Highway. This will also serve as a boost for the SPV.
DMEL has recently obtained a ‘AAA’ rating from bodies like CRISIL, CARE and India Rating. CRISIL has further stated that DME has a monetisation potential of between ₹50,000 to 80,000 crores.
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