NHAI turns to banks for ₹25,000-cr road financing

In a bid to ensure sufficient fund flow for its ongoing and upcoming road projects, the National Highways Authority of India (NHAI) has reached out to banks to avail ₹25,000 crore seven to 10 years loan at lowest interest rate during the current financial year. Up till now the nodal road building agency had been tapping fund from other sources such as Life Insurance Corporation (LIC), Employees Provident Fund Organisation (EPFO) and also by raising bonds. The Union government has allowed NHAI to raise ₹62,000 crore from internal and external borrowings and currently the authority is selecting banks if they offer minimum ₹1,000 crore loan for the above mentioned period. The decision to select the banks would be based on the lowest rate of interest quoted by them. The initial requirement of the fund expected to be tied up depending on the suitability of the offers and requirement of the fund to NHAI, this limit may be increased and decreased, said sources.