NHAI's debt has risen over 9 times since 2014-15.
The debt of the National Highways building authority has risen over nine times since 2014, with the current figures estimated at around Rs 2.3 lakh crore,
This was informed by Union minister of road transport and highways Nitin Gadkari in the Parliament .
The total debt of National Highways Authority of India (NHAI) during financial year 2014-15 when the BJP government took charge, stood at Rs 24,188 crore. In the following years, the outstanding debt of NHAI has risen gradually-- Rs 44,567 crore in FY 16, Rs 77,742 crore in FY 17, Rs 1,21,931 crore in FY 18, Rs 1,78,867 crore in FY 19. The authority's debt till February 2020 stood at Rs 2,28,252 crore
To service the spiraling debt, NHAI “is taking action for monetisation of the assets through Infrastructure Investment Trust (InvIT) and Toll-Operate-Transfer (TOT),” Gadkari said in a written response to a Lok Sabha question.
NHAI is incorporating a special purpose vehicle (SPV) in which some sections will be transferred. Subsequently, the SPV will transfer those assets to the InvIT to be formed by NHAI, Gadkari said.
NHAI’s rising debt has become a matter of concern for market watchers recently. In August 2019, a letter from the Prime Minister’s office to road transport secretary Sanjeev Ranjan, criticised NHAI’s “unplanned and excessive” expansion.
“Road infrastructure has become financially unviable; private investors and construction companies are withdrawing from greenfield projects,” the letter pointed out. The PMO further suggested that NHAI should focus on asset monetisation.
Gadkari later clarified on the letter saying that these were only a bunch of “suggestions”; and that NHAI has no dearth of funds, the union minister has reiterated on multiple occasions.
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02-2026
