The National Highways Authority of India (NHAI) aims to reduce its debt of ₹3.5 trillion. It plans to achieve this through asset monetisation and increased toll income. By 2025, the NHAI intends to raise ₹5 trillion through asset monetisation.
In the ongoing fiscal year, the NHAI has identified 30 highway stretches spanning 1,987 km for monetisation. The target is to generate ₹45,000 crore through toll operate transfer (TOT) and National Highways Infra Trust, an InvIT established by the NHAI.
The NHAI expects a rise in toll income for the current fiscal year due to a steady increase in highway traffic. In the first six months of this year, toll income has already increased by 16% to ₹29,000 crore.
To address its high debt-to-equity ratio of 8.5, the NHAI plans to bring it down to 6 by 2025.
The government’s asset monetisation program aims to raise ₹6 trillion in the next four years. By monetising assets, the government hopes to reduce the fiscal deficit and allocate resources to other investments.
