The Kerala government in India has agreed to grant INR 6,000 crore ($870 million) to the National Highways Authority of India (NHAI) to partially finance national highway developments in the state.
The financing will commence through the government’s Infrastructure Investment Fund Board (KIIFB), responsible for funding infrastructure projects in Kerala, Hindu Business Line reported July 26.
The highway project, which will widen 565 kilometers (351 miles) of two-way highways into four-to-six lanes, will reportedly cost INR 48,000 crore (roughly $7 billion) in total. Unable to finance the project independently, NHAI asked the Kerala government for assistance with one-fourth of the land acquisition cost.
NHAI reportedly needs INR 22,000 crore ($3.1 billion) to acquire the additional 1,176 hectares (2,905 acres) of additional land to build the highway on.
The government is scheduled to disperse INR 50,000 crore ($7.2 billion) in total, including the latest financing offer, to NHAI to finance various infrastructure projects.
