NEW DELHI: Over a dozen banks and financial institutions have assured NHAI to fast-track financing agreements with private highway developers for more a dozen projects worth Rs 14,000 crore, which have been awarded under “hybrid annuity” model.
Under this model, NHAI pays 40% of the project cost during construction and refunds the rest of the cost in installments over a period of 10 years in 20 equated installments.
Sources said the deadline to tie up finances is over in seven cases, which triggered the highways minister Nitin Gadkari and NHAI to rush to Mumbai on February 6 to reach out to the banks. Top executives of 16 banks, including of SBI, Central Bank of India, Canara Bank, IDBI, ICICI and IIFCL attended the meeting.
Banks have also shown interest to provide financing for another five projects worth Rs 7,700 crore, which have been awarded under build, operate and transfer (BOT) mode.