New Delhi: India’s highways authority announced on Tuesday its plan to monetize up to $4 billion worth of road projects within the current fiscal year ending in March. This move aims to reduce its massive debt through an infrastructure investment trust route.
The state-owned National Highways Authority of India (NHAI) currently holds an outstanding debt of ₹3.2 lakh crore ($38 billion). The agency is leveraging assets via infrastructure investment trusts to repay loans. “With this, the overall debt liability of NHAI is expected to further reduce to around ₹3 lakh crore by the end of fiscal 2025,” stated an official release.
Infrastructure Investment Trusts
Infrastructure investment trusts have gained traction in recent years as India increases its infrastructure spending to boost economic growth. The statement also mentioned the company’s hope to save approximately ₹1,000 crore by retiring high-cost debt worth ₹15,700 crore ahead of schedule.
Previous Monetization Efforts
Previously, NHAI raised about ₹16,000 crore by monetizing 889 kilometers of toll roads. The authority, which manages 983 toll plazas, aims to construct 10,421 kilometers of new national highways in the current fiscal year, as stated by Nitin Gadkari, India’s road transport and highways minister, to parliament last week.
Spending Plans
The NHAI plans to invest nearly ₹1.68 lakh crore in road projects during the current fiscal year, primarily funded through the federal budget, toll collections, and monetization of assets.
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