PM Modi’s $5 trillion GDP goal hits a hurdle: Debt at road builder NHAI
India’s path to economic recovery faces another obstacle, with Prime Minister Narendra Modi asking the state road builder to stop constructing highways after its debt ballooned almost seven-fold over the past five years.
“National Highways Authority of India totally logjammed with unplanned and excessive expansion of roads,” the prime minister’s office wrote to NHAI in a letter dated August 17. “NHAI mandated to pay several times the land cost; its construction costs also shooting up. Road infrastructure has become financially unviable.”
Modi’s office proposed that NHAI be transformed into a road-asset management company, according to the letter obtained by Bloomberg, and the prime minister’s office asked NHAI to reply within a week.
