NBFC Advik Capital Limited is in an advanced stage of financing the National Highway Authority of India (NHAI) backed Gohana Sonepat highway project along with other banks.
The New Delhi-based company in a regulatory filing said that by funding mega infra projects, the company will not only enter into the arena of bigger business opportunities going forward, diversify its business, mitigate concentration risk but also ensure long-term viable revenue visibility.
The funding of the project will enable the company to expand its long-term asset book.
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Advik Capital had earlier disbursed a long-term loan amounting Rs 500 million for NHAI-backed Jind Gohana highway under the Hybrid Annuity Model (HAM) of the government.
The HAM is a combination of EPC (engineering, procurement and construction) and BOT (build, operate, transfer) models. It was launched by the government to boost investments in road infra projects.
Under the EPC model, NHAI pays private players to lay roads but they have has no role in ownership, toll collection or maintenance. The ownership, toll collection and maintenance are managed by the government. Under the BOT model, private companies build, operate and maintain the road for specified years. In HAM, the NHAI releases 40 per cent of the total project cost in five tranches. The remaining is arranged by the developer.
