NHAI's Strategic Push to Slash Debt Below Rs 2 Lakh Crore

NHAI aims to cut its debt below Rs 2 lakh crore by March. Having peaked at Rs 3.5 lakh crore in 2021-22, the debt currently stands at Rs 2.36 lakh crore. Strategic steps including prepayment and proactive bank negotiations have led to significant reductions in debt and interest burden.

The National Highways Authority of India (NHAI) is taking decisive strides toward reducing its debt to less than Rs 2 lakh crore by the end of the current financial year. This marks a significant move from its peak debt of Rs 3.5 lakh crore in the 2021-22 period.

According to a senior government official, who spoke on condition of anonymity, NHAI has not taken on new borrowing since 2023, allowing the debt liability to fall by about 32 percent. Additionally, the agency prepaid Rs 86,000 crore of its obligations, including a substantial Rs 50,000 crore in NSSF loans.

Through effective negotiation with banks, NHAI managed to reduce interest rates substantially by 80 basis points over the last two years. This has resulted in interest savings exceeding Rs 3,500 crore, contributing to the organization's financial health.