NHAI Pre-Pays Rs 15,700 Crore Debt Amid Robust Toll Revenue and Asset Monetisation

The National Highway Authority of India (NHAI) is not encountering any financial crises and has outlined a debt servicing plan via improved toll revenue and asset monetisation, according to Union Road Transport and Highways Minister Nitin Gadkari. NHAI prepaid Rs 15,700 crore of bank loans with InvIT proceeds in recent fiscal years.

The National Highway Authority of India (NHAI) is not experiencing any financial turmoil and has formulated a strategy to manage its debt through enhanced toll revenue inflows and asset monetisation, Parliament was informed on Thursday.

In a written statement to the Lok Sabha, Union Road Transport and Highways Minister Nitin Gadkari affirmed that NHAI is financially stable, demonstrated by its prepayment of bank loans amounting to Rs 15,700 crore. This included Rs 6,350 crore in the last financial year and Rs 9,350 crore in July 2024, sourced from InvIT monetisation proceeds, Gadkari added.

He further indicated that NHAI's debt currently stands at Rs 3.35 lakh crore but noted that the government has not instructed NHAI to raise additional funds since FY2023-24, signaling the initiation of debt reduction. The minister highlighted that NHAI's debt servicing plan focuses on improved toll revenue and asset monetisation, with InvIT-raised funds dedicated exclusively to debt repayment.

Infrastructure Investment Trust (InvIT) functions similarly to mutual funds, pooling investor money to invest in assets generating cash flows over time. In 2017, the government's mandate for NHAI expanded to include the execution of Bharatmala Pariyojana, requiring funding through Internal and Extra Budgetary Resources (IEBR) approved in the Union Budget.