Mumbai: State-owned National Highways Authority of India (NHAI) has raised Rs5,000 crore by selling bonds to Life Insurance Corp. of India (LIC) as it looks for long-term borrowing at cheaper rates to fund road projects, according to two people with direct knowledge of the deal.
NHAI sold 30-year bonds to the state-run insurer at a coupon rate of 7.24%.
The government plans to develop 40 economic corridors spanning 21,000km of roads, entailing an investment of Rs3 trillion. The total road length to be developed as expressways under the government’s Bharatmala project is around 51,000km.
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