National Highways Authority of India (NHAI) signed a Memorandum of understanding with National Investment and Infrastructure Fund (NIIF). NIIF is a fund promoted by the Government of India to give a boost to the infrastructure sector in the country. The MoU is related to co-operation in the formation of SPVs to execute the fund arrangement for large size road projects particularly greenfield projects to be executed by NHAI in the future.

This arrangement of innovative alternate source of funding is being looked into by NHAI to attract international investors and funds who are willing to invest in road projects in India but not very keen to take risk related to the project execution. This arrangement is expected to bring a large amount of investment at an economical rate for highway development in India and also reduce the stress of borrowing on NHAI balance sheet.