NHAI debt falls to Rs 2.35 lakh crore, target set below Rs 2 lakh crore

State-owned National Highways Authority of India (NHAI) is planning to reduce its debt to below Rs 2 lakh crore in the current financial year ending March, a senior government official said on Sunday.

NHAI’s debt liability had peaked at Rs 3.5 lakh crore in 2021–22. As of December 31, 2025, its outstanding debt stood at Rs 2,35,947 crore.

“In line with the government policy, NHAI has not borrowed since 2023 and since then the debt liability was reduced by around 32 per cent,” the official said on condition of anonymity.

As part of its debt reduction measures, the official said NHAI has prepaid liabilities worth Rs 86,000 crore, including Rs 50,000 crore of loans from the National Small Savings Fund (NSSF).

“No specific target for the current year was fixed but the debt liability is planned to be brought down below Rs 2,00,000 crore,” the official said.

Retiring debt ahead of schedule has contributed to a significant reduction in NHAI’s overall liabilities.

The official added that proactive negotiations with banks enabled NHAI to refix interest rates lower by around 80 basis points over the past two years, resulting in savings of more than Rs 3,500 crore.