NHAI’s Financial Health: Clearing Debts and Strengthening Infrastructure

In a move that underscores its financial robustness, the National Highways Authority of India (NHAI) has demonstrated commendable fiscal management by pre-paying a substantial portion of its bank loans. The NHAI has settled Rs. 15,700 crore of its debt using proceeds from Infrastructure Investment Trust (InvIT) monetization, with Rs. 6,350 crore cleared in the last financial year and Rs. 9,350 crore in July 2024.

The Government of India (GoI) expanded NHAI’s responsibilities significantly in 2017, tasking it with the implementation of the ambitious Bharatmala Pariyojana, a nationwide infrastructure development project. To fund this large-scale initiative, NHAI raised funds as per the Internal and Extra Budgetary Resources (IEBR) approved by the Union Budget.

NHAI’s strategic plan to manage its debt relies on two main pillars: increased toll revenue inflows and asset monetization. By leveraging the InvIT mode, NHAI has been able to channel the raised funds exclusively towards debt repayment, reflecting a prudent and targeted financial approach.

Importantly, since the fiscal year 2023-24, the Government of India has not required NHAI to raise additional funds, signaling a shift towards debt reduction and financial consolidation. This milestone marks the beginning of a new phase for NHAI, focusing on debt servicing and financial stability.

Union Minister for Road Transport and Highways, Nitin Gadkari, provided this update in a written response in the Lok Sabha today, highlighting NHAI’s proactive measures in managing its financial obligations while continuing to spearhead critical infrastructure projects across the country.

(b) The details of funds raised and outstanding during last 10 years is given below.

(in Rs. Crore)