NHAI Targets Debt Reduction to Under ₹2 Lakh Crore by March 2026

State-owned National Highways Authority of India (NHAI) plans to bring its outstanding debt below ₹2 lakh crore by the end of the current financial year in March 2026, as per PTI report. The authority did not set a formal target for the year but aims to cross the threshold as part of its debt reduction plans. 

Debt Trend Since FY22 

NHAI’s debt burden peaked at around ₹3.5 lakh crore in 2021-22. As of 31 December 2025, total liabilities stood at ₹2,35,947 crore. The decline shows a combination of repayments and changes in funding strategy over the past three years. 

No Fresh Borrowing Since 2023 

In line with government policy, NHAI has not undertaken fresh borrowing since 2023. Since then, its debt has fallen by about 32%. The reduction was driven by a focus on lowering leverage rather than expanding borrowings for highway projects. 

Early Repayment of Loans 

To accelerate deleveraging, NHAI has prepaid liabilities worth about ₹86,000 crore. This includes ₹50,000 crore of loans taken from the National Small Savings Fund. Retiring debt ahead of schedule has contributed to a sharper fall in outstanding obligations. 

Lower Interest Costs 

NHAI has also renegotiated loan terms with banks over the past two years. Interest rates were reset lower by around 80 basis points, resulting in savings of more than ₹3,500 crore in interest expenses. Officials said the changes reduced financing costs and improved cash flow management. 

Read More: SEBI Recognises NHAI Projects as Public InvITs! 

Conclusion 

With no new borrowings and continued repayments, NHAI expects its debt stock to decline further by March 2026. The steps taken focus on reducing liabilities and interest costs while continuing to fund ongoing highway development projects. 

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