The National Highways Authority of India (NHAI) has significantly reduced its debt burden by pre-paying loans worth ₹56,000 crore during the current fiscal year, saving approximately ₹1,200 crore in interest costs. A senior government official confirmed the development on Sunday.
At the beginning of the 2024-25 fiscal year, NHAI’s total debt stood at ₹3.35 trillion. By the end of the third quarter, the debt had reduced to ₹2.76 trillion, marking a substantial improvement in the state-owned agency’s financial position.
The official elaborated that ₹15,700 crore of the pre-paid amount was sourced from proceeds raised through InvIT (Infrastructure Investment Trust) monetisation. Additionally, ₹40,000 crore was repaid to loans from high-interest sources, including ₹30,000 crore to the National Small Savings Fund (NSSF) and ₹10,000 crore to the State Bank of India (SBI).
“NHAI is successfully reducing its debt liability and enhancing its financial health through efficient management,” the official stated.
This proactive debt management strategy aligns with the government’s broader fiscal goals. Finance Minister Nirmala Sitharaman had retained a robust allocation of ₹1.68 trillion for NHAI in the Union Budget for 2024-25, emphasising the agency’s pivotal role in infrastructure development.
NHAI’s efforts come as part of its commitment to streamline operations and optimise resources. By addressing loans with higher interest rates, the agency not only reduces its financial liabilities but also strengthens its ability to undertake new infrastructure projects.
With India’s infrastructure development at the forefront of economic growth plans, NHAI’s focus on debt reduction is expected to have a positive ripple effect, enabling more efficient utilisation of funds for ongoing and upcoming highway projects.
The agency’s strategic steps in financial management reaffirm its role as a critical driver of India’s infrastructure growth.
