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New speed breaker on India's road to $ 5 trn economy; NHAI's mounting debt

NHAI's debt has increased seven-fold in the past five years

Highways
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Dhwani Pandya | Bloomberg
India’s path to economic recovery faces another obstacle, with Prime Minister Narendra Modi asking the state road builder to stop constructing highways after its debt ballooned almost seven-fold over the past five years.

"National Highways Authority of India totally logjammed with unplanned and excessive expansion of roads," the prime minister’s office wrote to NHAI in a letter dated August 17. "NHAI mandated to pay several times the land cost; its construction costs also shooting up. Road infrastructure has become financially unviable."

Modi’s office proposed that NHAI be transformed into a road-asset management company, according to the letter obtained by Bloomberg, and the

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First Published: Aug 30 2019 | 6:51 AM IST

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