NHAI Implements Strategic Debt Repayment Plan: Gadkari

The National Highway Authority of India (NHAI) is not experiencing financial crises as it has developed a strategic plan to manage its debt through enhanced toll revenue and asset monetisation. Union Road Transport and Highways Minister Nitin Gadkari informed Parliament that the NHAI has already pre-paid significant loans using InvIT proceeds.

The National Highway Authority of India (NHAI) is not facing any financial crises and has developed a strategic plan to service its debt through increased toll revenue and asset monetisation, Parliament was informed on Thursday.

In a written reply to the Lok Sabha, Union Road Transport and Highways Minister Nitin Gadkari said, ''NHAI is not facing any financial crises which is evident from the fact that NHAI has pre-paid bank loans amounting to Rs 15,700 crore through InvIT monetisation proceeds - Rs 6,350 crore in the last financial year and Rs 9,350 crore in July 2024,'' he added.

NHAI's current debt stands at Rs 3.35 lakh crore. Gadkari stated that the government has not mandated NHAI to raise funds since FY2023-24, initiating a debt reduction process. The minister also highlighted that the amount raised through the InvIT mode is used exclusively for debt repayment.

Infrastructure Investment Trust (InvIT) is an instrument designed similar to mutual funds to pool money from investors and invest in assets that generate cash flows over time. NHAI has not raised borrowing since implementing the Bharatmala Pariyojana in 2017, under government-approved Internal and Extra Budgetary Resources (IEBR).

In response to another inquiry, Gadkari mentioned that NHAI's capital expenditure in 2023-24 stood at Rs 2,07,130 crore, the highest in five years. He noted that NHAI has constructed 24,050 km of national highways over the last five years, generating extensive employment opportunities.