Reportedly, the national highways building authority NHAI is in talks with Life Insurance Corporation (LIC) to raise around Rs 25,000 crores through the sale of bonds this financial year, a senior official said. It would be as a part of its long term funding arrangement with the insurer.
On Friday, NHAI chairman NN Sinha told reporters on the sidelines of an event, “We are in talks with LIC to raise around Rs 25,000 crores this financial year.” He further added that the NHAI and LIC had previously held initial discussions on the funding arrangement. “LIC has agreed to fund at the current subscription for the next 5 years,” Sinha told.
Sinha mentioned that the maturity period of the bonds will be for 30 years and the coupon rate is yet to be worked out. The move to raise funds comes as the highways ministry faces stiff targets to raise funds outside of the budgetary allocation of Rs 36,691 crore for FY 20.