Highways Min eyes ´masala´ bonds to fund road projects

The Road Transport and Highways Ministry and its road building arm, NHAI, are weighing the option of raising money through ´masala bonds´ as road construction activity gathers pace. Masala bonds refer to a financial instrument through which Indian companies can raise money from global markets in rupees.According to news reports quoting unnamed sources, a London-based firm has approached the ministry as NHAI needs to raise about Rs.50,000 crore this year for projects. The ministry has provided Rs.2,000 crore from the fuel cess to NHAI and has asked it to fend for itself. Officials reportedly said the proposal from the London-based firm is being considered. The highway ministry has set an ambitious target of building 15,000 km of roads and awarding projects for another 25,000 km in the current financial year.