NHAI sets up SPV for Delhi-Mumbai e-way

NEW DELHI: The National Highways Authority of India has set up a wholly owned special purpose vehicle (SPV) for execution and operation of Delhi-Mumbai expressway project, a model which will be replicated big projects, including 23 greenfield highways and economic corridors with a cumulative investment of around Rs 3.3 lakh crore by 2025.
These highway networks have combined length of about 7,800km. The SPV, DME Development Ltd, will raise debt on its balance sheet while NHAI will retain the operational control during construction and operation and maintenance.In this model, the toll on the projects will be collected by NHAI and SPV will get the annuity payments without any construction and tolling risks.
Delhi-Mumbai expressway, Ahmedabad-Dholera and Amritsar-Jamnagar are scheduled for completion by March 2023 and nine more are to be completed by March 2024. Another nine would be completed by March 2025.
This network of greenfield roads are spread across the country connecting major cities such as Surat, Solapur, Lucknow, Vizag, Chennai, Bengaluru, Vijywada, Raipur, Koat, Kharagpur and Siliguri.
The massive development of expressways and greenfield corridors is aimed at ensuring seamless travel for commuters and more so for movement of heavy goods vehicles. Currently, goods vehicle in India cover about 400 km per day, which is at least 50% less than what is the norm internationally.