NHAI's Strategic Loan Prepayment

In a significant financial maneuver, the National Highways Authority of India (NHAI) has prepaid loans amounting to Rs 56,000 crore in the current fiscal year, aiming to further reduce its debt burden by March. This strategic move comes as the overall capital expenditure (capex) has seen a decline due to fewer contracts awarded and a slowdown in new project approvals and land acquisition processes.

Impact on NHAI's Debt Profile

Starting the fiscal year with a debt of approximately Rs 3.3 lakh crore, NHAI's debt is now estimated to have been reduced to around Rs 2.8 lakh crore. The prepayment includes loans from the National Small Saving Fund and certain commercial banks known for their high-interest rates, which is expected to save the authority around Rs 1,200 crore in interest costs.

Future Financial Strategies

With the government setting a target to raise around Rs 39,000 crore from the monetization of completed projects, NHAI plans to utilize these funds to further repay its loans. The authority's financial strategy also includes a significant increase in revenue from wayside amenities and complexes along national highways, projecting a rise to nearly Rs 1,400 crore by 2027-28.