YEIDA to raise ₹10,000 Crore for major projects, including Rapid Rail Corridor

Anushka Khare Posted on: 2023-11-24 06:05:00 Viewer: 1,595 Comments: 0 Country: India City: Greater Noida

YEIDA to raise ₹10,000 Crore for major projects, including Rapid Rail Corridor

Greater Noida, India (Urban Transport News):  In a strategic move to fund ambitious projects, the Yamuna Expressway Industrial Development Authority (YEIDA) is set to raise Rs 10,000 crore through a combination of infrastructure and municipal bonds. This financial boost aims to support key initiatives such as the rapid rail corridor and various other significant ventures.

YEIDA officials emphasized the importance of evaluating the Authority's creditworthiness as a crucial step before initiating the bond issuance. This assessment, facilitated by a reputable credit rating agency, is imperative for urban local bodies (ULBs) seeking capital market borrowings.

During a recent meeting, CRISIL and CARE expressed their interest in conducting the credit rating process. The selected agency will delve into YEIDA's financial management strengths and weaknesses, determining its borrowing capacity for term loans.

YEIDA CEO Arun Vir Singh outlined the scope of the projects set to benefit from the raised funds. In addition to the rapid rail corridor, the funds will contribute to the development of industrial and information technology parks, sports facilities, major roads, bridges, and the international airport.

"To achieve rapid and comprehensive development in the region, the Authority will raise funds by issuing infrastructure and municipal bonds," Singh stated. A significant portion of the funds will be allocated to land acquisition and infrastructure development for industrial parks.

Meeting the financial demands for the rapid rail connectivity between Noida International Airport in Jewar and Delhi is identified as a major challenge for YEIDA. Infrastructure bonds, as debt instruments, will play a crucial role in funding these city development and maintenance projects.

YEIDA's credit rating is expected to be a pivotal factor in securing favorable terms for the bonds. Recent financial transactions, such as securing a loan from SBI, have positioned the authority with an 'A+' rating. The Authority anticipates an even more favorable rating, given its successful acquisition of an interest-free loan of Rs 1,779 crore from the state government and consistent profit growth.

YEIDA has initiated the credit rating process by issuing a request for proposal, with a deadline for submissions set on December 5. The comprehensive three-stage process will involve data gathering, feedback presentations, and the submission of the final credit rating report, extending over seven months.

As YEIDA progresses towards these financial milestones, the region anticipates transformative developments in its infrastructure and connectivity.





Also Read




Leave Your Comment!









Recent Comments!

No comments found...!