NHAI Targets Debt Below Rs 2 Lakh Crore by March 2026
NHAI aims to reduce its debt below Rs 2 lakh crore by March 2026, down from a peak of Rs 3.5 lakh crore.
The National Highways Authority of India (NHAI) is set to reduce its total debt to below ₹2 lakh crore by the end of the current financial year in March 2026, a senior government official said on Sunday. This move comes as part of the government’s broader effort to strengthen the financial health of state-owned infrastructure companies.
NHAI’s debt had peaked at ₹3.5 lakh crore during 2021-22 but has steadily declined since then. As of December 31, 2025, the total debt stood at ₹2,35,947 crore, marking a reduction of roughly 32% over the past two years. The authority has not borrowed since 2023, signaling a strategic shift towards debt management and fiscal consolidation.
To accelerate debt reduction, NHAI prepaid ₹86,000 crore of its liabilities, including ₹50,000 crore owed to the National Small Savings Fund (NSSF). These prepayments have helped the authority retire debt ahead of schedule, significantly easing its financial burden and improving operational flexibility.
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In addition to principal repayments, NHAI successfully renegotiated interest rates with banks, bringing them down by around 80 basis points. This has resulted in interest savings exceeding ₹3,500 crore over the past two years, contributing to a substantial improvement in its cash flow and financial stability.
The move to reduce debt is expected to enhance NHAI’s capacity to invest in ongoing and upcoming national highway projects, ensuring faster execution and better connectivity across the country. Officials noted that while no specific target was initially set, the authority is on track to achieve the ambitious milestone of under ₹2 lakh crore by March 2026.
Analysts say this debt reduction will not only strengthen NHAI’s balance sheet but also boost investor confidence and lower the cost of future borrowing, positioning the authority for sustainable growth and long-term infrastructure development.
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