The National Highway Authority of India (NHAI) is not experiencing any financial crises, according to Union Road Transport and Highways Minister Nitin Gadkari. In a written reply to the Lok Sabha on Thursday, Gadkari provided an update on the financial health of NHAI and its strategies for managing debt.
Debt Management and Financial Health
Gadkari reported that NHAI has successfully prepaid a substantial portion of its debt through monetisation proceeds from Infrastructure Investment Trusts (InvIT). Specifically, NHAI has repaid Rs 15,700 crore in bank loans—Rs 6,350 crore in the last financial year and Rs 9,350 crore in July 2024.
The total debt of NHAI currently stands at Rs 3.35 lakh crore. Despite this significant figure, Gadkari assured that NHAI is not facing a financial crisis. The debt reduction is part of a broader strategy to manage financial obligations more effectively.
Funding and Debt Servicing Strategy
The minister highlighted that the government has not instructed NHAI to raise additional funds since the fiscal year 2023-24. This indicates a strategic shift towards reducing existing debt rather than accruing new liabilities.
NHAI’s plan to service its debt involves improving toll revenue inflows and leveraging asset monetisation. The funds raised through InvIT are being used exclusively for repaying existing debt, according to Gadkari.
InvITs are investment vehicles similar to mutual funds, designed to pool resources from investors to invest in income-generating assets over time. This approach helps in managing and servicing large-scale debts by converting assets into liquid funds.
Bharatmala Pariyojana and NHAI’s Role
The Bharatmala Pariyojana, a flagship infrastructure project, was assigned to NHAI in 2017. The scheme aims to enhance road connectivity across the country, and NHAI has been actively involved in its implementation. For this purpose, NHAI has utilized borrowing as per the Internal and Extra Budgetary Resources (IEBR) framework approved by the Union Budget.
Gadkari’s statement reassures that NHAI is taking proactive measures to handle its financial commitments and continues to advance major infrastructure projects across India.
