NHAI may get $400-mn loan from ADB next month

The National Highways Authority of India said on Friday it is negotiating with the Asian Development Bank for a $400-million (about Rs 1,800 crore) loan, and the deal may get through by the next month.

"We are negotiating with ADB for a $400 million loan...We will close the deal by end of this year. . . the money is required next year," NHAI member-finance A Didar Singh told PTI.

The government needs about Rs 3.31 lakh crore (Rs 3.31 trillion) to meet its target of developing 35,000 kms of national highways over the next five years.

"Out of the total requirement of Rs 3.31 lakh crore, about 1.97 lakh crore (Rs 1.97 trillion) will come from the private sector and the rest would be arranged by NHAI," Singh said.

NHAI, which is responsible for development and maintenance of national highways, meets its financial needs through cess on sale of fuel, borrowings from international lending agencies and the financial market.

Singh said the contracts for about 100 highway projects would be awarded by March next year.

The length of national highways is about 70,548 km, representing only two per cent of the country's total road network, but carry about 40 per cent of the road traffic.