NEW DELHI: The
National Highways Authority of India (
NHAI) has reached out to banks to avail Rs 25,000 crore seven to 10 years loan at lowest interest rate during the current financial year. Till now the authority had been tapping fund from other sources such as Life Insurance Corporation (LIC), Employees Provident Fund Organisation (
EPFO) and by raising bonds.
Sources said NHAI has taken this move considering that the interest rate of other entities and banks are now competitive. The government has allowed NHAI to raise Rs 62,000 crore from internal and external borrowings. The authority will select banks if they offer minimum Rs 1,000 crore loan for the above mentioned period.
“The decision to select the bank/s would be based on the lowest rate of interest quoted by the
bank...The initial requirement of the fund expected to be tied up with this process is Rs 25,000 crore, but depending on the suitability of the offers and requirement of the fund to NHAI, this limit may be increased and decreased,” said an official document.
Officials said the authority is also in talks with the LIC for long-term loan for the next few years to meet the fund requirements for highway development works.