In a significant move to enhance its financial stability, the National Highways Authority of India (NHAI) has successfully pre-paid a substantial bank loan of Rs. 15,700 Crore. This proactive measure, taken ahead of schedule, is set to yield estimated interest savings of approximately Rs. 1,000 Crore. Following this pre-payment, NHAI's outstanding debt has decreased to around Rs. 3,20,000 Crore.
Under the directives from the Government of India, funds from Infrastructure Investment Trust (InvIT) monetization are earmarked exclusively for debt repayment. The Rs. 15,700 Crore pre-payment was financed through InvIT proceeds generated in the fiscal year 2023-24. For the financial year 2024-25, NHAI plans to monetize additional projects worth Rs. 15,000 to Rs. 20,000 Crore through InvIT, with expectations to further reduce the overall debt liability to around Rs. 3,00,000 Crore by the end of fiscal 2025.
As part of its comprehensive debt management strategy, NHAI has engaged with lending banks to negotiate lower interest rates. Consequently, banks have reduced their interest rates from 8.00-8.10% to 7.58-7.59%. Loans where interest rates could not be decreased have been repaid, contributing to the overall debt reduction and anticipated interest savings.
NHAI remains committed to improving the efficiency and quality of India's National Highway infrastructure. The effective financial planning and robust asset monetization strategies underscore NHAI's strong financial performance. The savings achieved through this debt reduction will play a crucial role in advancing both ongoing and future national highway projects.