NHAIs deleveraging unlikely for 25 years


The National Highways Authority of India (NHAI) announced that it would require 25 years to deleverage its balance sheet. According to NHAI, it stated in response to an RTI query that it would achieve this goal by FY 2049-50. This information becomes significant as NHAI is currently struggling with its increasing debt. The Comptroller and Auditor General of India (CAG) raised concerns about the cost overruns in highway projects managed by NHAI.

Additionally, NITI Aayog, the Union government's think tank, mandated an evaluation of NHAI due to its escalating debt servicing burden, contingent liabilities, reliance on government budgetary support, and its ambitious highway and infrastructure plans. In the Union Budget 2023-24, NHAI received an allocation of Rs 1.62 trillion, which was 15% more than the revised estimates for 2022-23. As of September 2023, NHAI's total outstanding debt stood at Rs 3.48 trillion.

Experts believe that the asset monetisation initiative undertaken by NHAI will yield results in the next 15-20 years. Consequently, NHAI has internally set a target to complete the deleveraging of its balance sheet by FY 2049-50.

Related Stories

18,714 Km Highways Constructed Under Bharatmala Pariyojana

Bharatmala Pariyojana was approved by the government of India in 2017.

NHAI Faces Land Acquisition Hurdles for Rs 400 billion Road Projects

Developers are also facing financial strain.

Vizhinjam Port to Enhance Operations

The port usually uses ship-to-shore cranes and yard cranes for container handling.