Road Ministry demands 25% hike in budget allocation to keep NHAI borrowings at minimum in next financial year: Report

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₹3.25 lakh crore for the fiscal year 2024-25 from the Ministry of Finance, which is a 25 percent increase compared to the previous year, according to a report by Moneycontrol. The government aims to maintain minimal market borrowings for the National Highways Authority of India in the upcoming financial year, government officials said.

"As part of the government’s strategy to recapitalise its (NHAI) balance sheet with higher budgetary support and zero market borrowings, we have asked for a 20-25 percent jump in Budget allocation needed in 2024-25," a senior government official said. The Official further mentioned that following a comparatively subdued year marked by limited project awards due to state elections and the impending Lok Sabha elections, the government intends to substantially escalate project awards in the fiscal year 2024-25.

This, in turn, is expected to enhance the capital expenditure outlay for the upcoming year. "NHAI is likely to complete 2023-24 will market borrowing of less than ₹1,000 crore for the second straight year and going forward its market borrowing is expected to remain less than ₹1,000 crore for 2024-25 as well, after which its total debt will be in a comfortable spot," a second government official said.

The government has designated the National Highways Authority of India's (NHAI) internal and extra-budgetary resources (IEBR) as minimal for the fiscal year 2023-24. This implies that the NHAI does not intend to seek external borrowing to finance its capital expenditure.

For the second consecutive fiscal year, the Union Budget has allocated minimal market borrowing for the National Highways Authority of India (NHAI). Officials anticipate that NHAI's reliance on market borrowing will