NHAI plans to monetize $2.4B of assets by March 2025
The National Highways Authority of India (NHAI) has disclosed its strategy to monetize road projects worth up to $2.4 billion in FY25. This initiative is part of a wider plan aimed at reducing the authority's significant debt, which currently stands at a staggering $38 billion or ₹3.2 trillion. The NHAI plans to utilize infrastructure investment trusts for asset monetization, a method that has gained traction in recent years as India ramps up its infrastructure spending to stimulate economic growth.
NHAI's debt reduction strategy and early retirement of high-cost debt
The NHAI anticipates that this asset monetization strategy will further decrease its overall debt liability to around ₹3 trillion by the end of March 2025. In addition to this, the authority also plans to retire high-cost debt worth ₹157 billion ahead of schedule, a move expected to save about ₹10 billion. Previously, NHAI had raised approximately ₹160 billion by monetizing its assets of 889km of toll roads.
NHAI's ambitious road construction targets for FY25
The NHAI has set ambitious targets for road construction and development in the current fiscal year. The agency, which currently manages 983 toll plazas, aims to construct an additional 10,421km of new national highways in FY25. This information was shared by Nitin Gadkari, India's Road Transport and Highways Minister during a parliamentary session last week.
NHAI's funding plan for new road projects in fiscal 2025
To finance these ambitious projects, the NHAI plans to spend nearly ₹1.68 trillion in the current fiscal year. The funding will primarily come from the federal budget, toll collections and further asset monetization efforts. This comprehensive approach is part of NHAI's broader strategy to manage its debt while simultaneously expanding India's national highway network.
