Part of Delhi-Meerut Expressway project gets financial closure
Financial closure has been achieved for the first part of the Rs 7,566 crore Delhi-Meerut Expressway project, the foundation for which was laid by Prime Minister Narendra Modi last year. The closure is for the 8.7-km stretch in Delhi, of the 96-km Expressway.
“Financial closure has been achieved for first part of the Delhi-Meerut Expressway,” National Highways Authority of India (NHAI) Chairman Raghav Chadra said.
“The 14-lane project with six-lane expressway in the Centre, flanked by two four-lane highways on either side is the first scheme under hybrid annuity model (HAM) to achieve the financial closure,” he said.
Chandra, along with Welspun Enterprises Managing Director Sandeep Garg, was jointly addressing the media.
Welspun Enterprises has bagged India’s first expressway project from NHAI at a total project cost of Rs 841.50 crore.
Of this, 40 per cent will be funded by NHAI under the new Hybrid Annuity Model. “Balance 60 per cent will be arranged by way of mix of debt/equity of 48:12, 12 per cent being the promoters contribution and rest will be funded by Punjab National Bank-led consortium of State bank of Hyderabad and Union Bank of India, Garg said.
HAM is a new mode of road building under which government provides 40 per cent grant while the private players arrange for the 60 per cent of the financing.
The NHAI Chief said: “With infrastructure spending going up, Hybrid Annuity Model is an opportunity to fast track highway projects and revive public- private-partnership mode. It will not only improve the traffic flow between the two states, but also contribute to enhancement of economic activity in the region.
Chandra added that the project is likely to be completed ahead of original schedule of 2.5 years and expected in 18-24 months.