The National Highways Authority of India (NHAI) has struck a deal with State Bank of India (SBI) for fresh fund infusion into three projects that cross Bihar, Maharashtra, Goa and West Bengal.
Under the arrangement (there are other lenders, too), the government would put in about Rs 1,100 crore while the banks would put in upwards of Rs 200 crore. Promoters of the three projects would give around Rs 100 crore. SBI has to give up its first claim on the projects and its revenue stream; NHAI will be allowed to first recover money. The banks already have exposure of about Rs 2,000 crore in the three projects. In two cases, the disbursed sum is more than the originally estimated cost. Now, the banks will specify a standard operating procedure for each. NHAI would recover the funds it would put in these projects within the lifecycle of these projects. It will charge the developers an interest rate of 2 per cent above the bank rate.