With the intention to fund the road projects, highways regulator the National Highways Authority of India (NHAI) announced that it has decided to raise Rs 3,000 crore during the existing fiscal through tax-free bonds.

To get a loan of about Rs 2,000 crore to fund road projects, the highways regulator is also making discussions with the Asian Development Bank (ADB).

Didar Singh, NHAI Member (Finance), said, “We have fixed a target of raising Rs 3,000 crore through tax-free bonds in the financial year 2009-10. The bonds will hit the market very soon.”

He said that Rs 17 billion has already been raised to fortify the segment during the previous fiscal (2008-09).

Around 60 projects worth Rs 70,000 crore were aimed to be bid out during the last fiscal (2008-09) but NHAI got bids only for 22 projects following the economic slump.

To give thrust to infrastructure financing, the administration has permitted nationalized infrastructure financing company to lift up Rs 10,000 crore via tax-free bonds by March 2009 to back up a public-private-partnership programme of Rs 1,00,000 crore in the core sector, including highways.