The National Highways Authority of India (NHAI) has brought down its debt further by Rs 4,721 crore, taking its total outstanding liabilities down to Rs 2.39 lakh crore. The total repayment due in FY26 was 11,251 crore.
This follows a massive reduction of debt by Rs 90,634 crore in 2024-25. A look at the robust monetisation pipeline of NHAI indicates that the highway builder would be retiring more than what is maturing this financial year too, proceeds of monetisation of highways through infrastructure investment trust are exclusively used for debt repayment.
This financial year two rounds of monetisation through InvITs are planned. One through private InvIT National Highways Infra Trust and another through public InvIT Raajmarg Infra Investment Trust.
NHIT acquisitions
The NHIT has already identified 9 stretches of total length 536.5 km for acquisition that can bring in over Rs 10,000 crore. Through the public InvIT NHAI is planning to monetise 1500 km of highways in next three to five years. This year the start could be small and bring in around Rs 7,000-8,000 crore.
The total debt of the NHAI stood at Rs 2,44,539 crore on March 31, 2025 and now stands at Rs 2,39,818 crore. By the end of 2023-24 the total debt of NHAI stood at Rs 3,35,173 crore. The last tranche of loans of Rs 700 crore through bonds was raised by NHAI in 2022-23.
Through pre-repayment in 2024-25 the NHAI has significantly reduced its obligations for the coming years. The repayment liability that was to peak at Rs 42564 in 2027-28 before tapering down, is now much lower at Rs 5,604 crore that year. Now the repayment obligation would be highest in 2029-30 when Rs 26,861 crore worth of bonds will mature. The last tranche of the loans taken before 2022-23 will be fully repaid by 2049-50.
NHAI’s debt
NHAI’s debt shot up after 2015-16 when the government’s expenditure on road infrastructure went on an overdrive as the private sector stepped back. The government enhanced the mandate of NHAI by assigning the implementation of Bharatmala Pariyojana in 2017. To implement the scheme, NHAI raised borrowing as per Internal and Extra Budgetary Resources limit approved by the government in the Union Budget.
As a result the debt of NHAI increased to Rs 3,42,801 crore by the end of FY 23. At that time the government stepped in and stopped any further debt raising by the authority. Since then debt reduction has started. As the debt route was no longer available, the government stepped up direct funding to the organisation.
The budgetary allocation to NHAI this year has been pegged at Rs 2.28 lakh crore from Rs 72944 crore in 2021-2022 when the external debt raising option was still available