Infrastructure–NHAI gets SBI’s largest ever loan of Rs 25000 Cr

Aug 3, 2018

New Delhi: The National Highway Authority of India(NHAI) has received Rs 25000 Cr long-term, unsecured loan from State Bank of India’s (SBI), which is the largest amount the state-run bank has invested in a government agency.

Union Minister for Road Transport and Highway Nitin Gadkari described the SBI move as a proof ofthe bank’s trust in the performance of the NHAI.

“It’s a historic day as the country’s largest state-run bank has invested it’s largest amount in a government body,” the Minister said in his remarks after the signing of the MoU between the SBI and the NHAI.
He said his Ministry had effected required changes in the government system to clear stalled projects.
The road building pace, which has come to 28 km a day, will reach 40 km a day next year, he said

The unsecured loan has been extended for a decade with a three year moratorium period. The loan will be lent at the rate of one month MCLR.

”It requires “courage” to lend such a huge amount,” Chairman, SBI Rajnish Kumar said.