NHAI executed capex for FY24 increases by 20% to Rs 2.07 trillion

The highway authority has constructed 6,644 km stretch, exceeding its FY24 construction target, according to an official

The National Highways Authority of India (NHAI) executed capital expenditure of Rs 2.07 trillion in the financial year 2023-24 (FY24), which is 20 per cent higher than its expenditure in both FY22 and FY23, a senior government official said.

“During FY24, NHAI achieved construction of 6,644 km of national highways against the target of 6,544 km. At 6,644 km, construction increased in FY24 by around 20 per cent compared to 5,544 km constructed in FY23 and by around 53 per cent compared to 4,331 km constructed in FY22,” the official said.

NHAI, operating under the Ministry of Road Transport and Highways, is tasked with executing road projects. The ministry itself is expected to have built around 12,000 km of highways in the fiscal year.

To alleviate debt burdens on capital-intensive bodies like NHAI and railways, the government has allocated increased capital expenditure, to offset the reliance on debt for funding rail and road projects.

The Ministry of Road Transport and Highways has been allocated Rs 2.78 trillion in FY25, according to the interim budget presented by Finance Minister Nirmala Sitharaman in February.

Meanwhile, during FY24, the NHAI reportedly monetised highway assets worth Rs 40,314 crore, through its three models – Toll Operate Transfer (TOT), infrastructure investment trust (InvIT), and toll securitisation for specific projects, such as the Delhi-Mumbai expressway. Now, the highway authority also plans to secure debt for expressway projects on a standalone basis, without a comfort letter from the NHAI.

“NHAI awarded four TOT bundles in FY24. The combined value of the TOT bundles was around Rs 15,968 crore. The success rate in TOT mode during FY24 was 100 per cent, and Letter of Acceptance (LoA) was issued within one day of the financial bid opening. NHAI also raised the highest ever monetisation value of Rs 15,700 crore through InvIT mode during the financial year as well as raised Rs 8,646 crore through toll securitisation,” the official said.