NHAI not to tap EPFO funds this year too

For the second year in a row, the National Highways Authority of India (NHAI) is unlikely to borrow from the Employees’ Provident Fund Organisation (EPFO) in an effort to rein in the cost of funds. It had borrowed Rs 10,000 crore each from the EPFO in 2016-17 and 2017-18, but refrained from borrowing from the retirement fund body in 2018-19 again as its rates were higher.

Sources said EPFO’s portfolio managers are not willing to lend the NHAI at anything below 8%, which the latter finds a bit expensive as its average cost of funds hovers a trifle below 8%. The NHAI is authorised to raise up to Rs 75,000-crore debt in the current fiscal – it raised Rs 60,000 crore in 2018-19.