Significant Progress in Debt Reduction with Rs. 15,700 Crore Prepaid in FY 2023-24
In a significant financial achievement, the National Highways Authority of India (NHAI) has successfully prepaid Rs. 15,700 crore of its bank loans, leading to an estimated interest savings of approximately Rs. 1,000 crore. This strategic move brings NHAI’s outstanding debt down to around Rs. 3,20,000 crore.
According to government directives, the proceeds from the Infrastructure Investment Trust (InvIT) monetization are dedicated solely to NHAI’s debt repayment efforts. During the fiscal year 2023-24, NHAI generated Rs. 15,700 crore through InvIT. In the upcoming financial year 2024-25, the authority aims to monetize additional projects worth between Rs. 15,000 to 20,000 crore through InvIT, which is expected to further reduce the debt to approximately Rs. 3,00,000 crore by the end of the fiscal year.
As part of its robust debt payment strategy, NHAI has been in active discussions with lender banks to negotiate lower interest rates. Consequently, the banks have reduced their interest rates from 8.00-8.10% to 7.58-7.59%. For loans where interest rate reductions were not feasible, NHAI opted for prepayment, resulting in significant interest savings of about Rs. 1,000 crore.
NHAI’s commitment to enhancing India’s National Highway infrastructure remains unwavering. The effective utilization of InvIT proceeds and sound financial planning underscore the authority’s strong financial performance. The savings from the debt reduction will be instrumental in advancing current and future National Highway projects, reinforcing NHAI’s mission to improve the country’s road network.
