Capex for Railways, NHAI may be funded solely by Budget

In the forthcoming financial year, there are indications that the Central Government will persist in undertaking the considerable capital expenditure responsibilities of both the National Highways Authority of India (NHAI) and the Indian Railways. This trend, if continued, would mean that NHAI will refrain from market borrowing for the third consecutive year, while the Railways will do so for the second consecutive year. This strategic move aims to ensure transparency and sustainability in funding these key state-run transport infrastructure entities. By incorporating their capital expenses directly into the budget, the government not only aligns their execution with its plans but also anticipates a reduction of approximately 50 basis points in the cost of funds for both NHAI and the Railways, as opposed to market borrowing.