Published at January 9, 2025 by InfraJunction
The National Highways Authority of India (NHAI) plans to raise Rs 1,000 crore for the Delhi-Mumbai Expressway. The funds will be raised by issuing green bonds through its arm, DME Development. This funding will support eco-friendly initiatives along the expressway.
NHAI announced on Thursday that the funds raised will be used for various environment-friendly measures on the project. A statement given by the Ministry of Road Transport and Highways stated, “To be held under a closed bidding system, the aggregate total size of the issue will be up to Rs 1,000 crore, with a base issue size of Rs 500 crore. There will be a green-shoe option to retain oversubscription up to Rs 500 crore. The first-of-its-kind green bond issue in the roads and highways sector is expected to be launched in the second week of December 2024 and will be completed with strict compliance to the Government of India’s sovereign green bonds framework, international protocols, and Sebi guidelines.”
The funds will be spent on various eco-friendly initiatives. These include avenue and median plantation, construction of animal underpasses, and natural stormwater drainage. Additionally, renewable energy-powered streetlights (solar), waste recycling, and rainwater harvesting will be implemented.
Santosh Kumar Yadav, Chairman of NHAI, stated that the green bonds would promote investment in sustainable projects. These projects are focused on the roads and highways sector. These bonds are also expected to generate long-term savings by reducing energy consumption and minimizing vehicular emissions.
DME Development, NHAI's special purpose vehicle, will raise debt against future proceeds from the highway project, a method known as toll securitisation. The company aims to raise around Rs 48,000 crore through loans and bonds. It has already secured Rs 42,000 crore for the Delhi-Mumbai Expressway project.
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