NHAI debt down to ₹2.39 trn; ministry says loans to be repaid by 2050

NHAI's debt stood at Rs 2.39 trillion as of November and is slated to be repaid by 2050, the road transport ministry told Parliament, outlining repayment plans through FY26 and beyond

The National Highways Authority of India (NHAI) has a debt of Rs 2.39 trillion as of November, and the authority will repay the loans by 2050, the ministry of road transport and highways has informed Parliament.

 

How much has NHAI repaid in FY26, and what is the plan for the year-end?

 

The ministry told the Rajya Sabha on Wednesday that it has repaid Rs 4,721 crore of loans in the current financial year (2025-26), and will repay almost Rs 7,000 crore worth of principal dues by the end of this fiscal year.

 

Moreover, it plans to repay almost Rs 62,000 crore of its debt by 2030.

 

Why has NHAI’s debt been a concern, and what changed in funding strategy?

 

NHAI’s debt had been a matter of concern in the past, and the government increased its capital expenditure allocation to the highways authority so it could focus on debt repayments without adding further debt.

 

As a result, the authority has not raised any new funds from the debt market in the last two financial years, and borrowed Rs 798 crore in 2022-23. However, it had raised Rs 1.3 trillion in the preceding two financial years.

 

What instruments has NHAI used to raise funds, and what is the status of foreign borrowings?

 

“NHAI raised these funds through various instruments such as tax-free bonds, taxable bonds, capital gain bonds which are exempted under Section 54EC of the Indian Income Tax Act, 1961, and domestic bank term loans. Further, NHAI had raised Rs 3,000 crore through rupee-denominated bonds in May 2017, which was listed on Singapore and London Stock Exchange. These bonds were redeemed in May 2022. There is no other foreign borrowings by NHAI,” the ministry informed the upper house of Parliament.

 

What is the repayment profile for 2040-2050, and how have allocations and debt moved?

 

In the decade between 2040 and 2050, NHAI will pay off around Rs 36,000 crore of its debt, it informed Parliament.

 

In the previous five financial years, the budgetary allocation of the national highways authority has increased by over five times to Rs 2.25 trillion in 2025-26, and its debt has reduced from Rs 3.39 trillion in 2023-24.