NHAI signs a Memorandum of Understanding with NIIF to finance projects on motorways

New Delhi: The National Highway Agency of India (NHAI) signed on Monday a Memorandum of Understanding with the National Investment and Infrastructure Fund (NIIF) for financing highways.
The Memorandum of Understanding was signed in the presence of Minister of Roads and Highways Nitin Gadkari and General (Retd) VK Singh, MoS. NIIF is a fund that promotes the Indian government to encourage the country’s infrastructure sector.
The Memorandum of Understanding refers to cooperation in the establishment of the SPV for the implementation of the arrangement of funds for large-scale road projects, in particular the greenfield projects that the NHAI will execute in the future.
Speaking on that occasion, Gadkari said: “NHAI collects funds for its mega projects and does not only depend on budget support. In the past, several financing models have been adopted, which have yielded good results. “
He welcomed the Memorandum of Understanding and expressed hope that he would provide innovative financial models, including 24,000 kilometers long barracks by Bharatmali Pariyojana. The Minister was confident that the road sector could contribute greatly to achieving Prime Minister’s dream of India becoming an economy of five trillion dollars.
Gen (Retd) K Singh greeted the gathering of two large entities – NHAI and NIIF, and expressed satisfaction with the pace of development in the country’s infrastructure sector.
NHAI deals with this arrangement of an innovative alternative source of funding to attract international investors and homeowners willing to invest in travel projects in India, but do not want to take on the risk associated with project execution. It is expected that this arrangement will bring enormous investment at an economical rate for the development of the highway in India and reduce the stress of borrowing on the NHAI balance.

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