The National Highways Authority of India (NHAI) on Tuesday said its fully owned special purpose vehicle (SPV) DME Developers (DMEL) has raised `9,731 crore to part-fund the 1,276 km, greenfield Delhi-Mumbai expressway.
“The major share of the funding came from the largest bank in India, the State Bank of India, which contributed Rs 5,000 crore. Punjab National Bank, Bank of Maharashtra and Axis Bank are the other investors in the SPV,” NHAI said in a statement.
The total estimated cost of the Delhi-Mumbai expressway project is about Rs 87,453 crore, including land acquisition cost of about Rs 20,589 crore.
During the construction period, the total capital expenditure is estimated to be Rs 53,849 crore, which will be funded through a combination of `48,464 crore debt and equity, the remaining.
“The project will soon tie-up with other institutions for the balance debt requirement of `38,733 crore. The expressway is scheduled for completion by March 2023,” NHAI said.
DME Developers has recently received AAA rating from CRISIL, CARE and India Rating. Delhi Mumbai Expressways SPV debt re-payment shall be made from the toll revenue generated from the expressway. To ensure viability of the model, NHAI has decided to add five running toll plazas on the existing Delhi-Mumbai highway as a sweetener to the SPV.
According to Crisil, DME has monetisation potential between Rs 50,000-80,000 crore.
Delhi Mumbai Expressway is a flagship greenfield project under ‘Bharatmala Pariyojna’. The project is being executed under 48 sub-projects, out of which 17 are hybrid annuity model projects and 31 are under EPC Model. Of these 48 sub-projects, 24 are under construction, 17 are awarded & work is to be started and the rest are under process for awarding.