Roadblock: Why NHAI construction could slow down sharply in 2 years

Given its somewhat fragile states of finances and also because concessionaires are unwilling to take on building risks, NHAI’s construction could slow down sharply in the next couple of years. It’s not the high debt alone — an estimated Rs 1.8 lakh crore at the end of March 2019, up from Rs 1.22 lakh crore in March, 2018 — that is worrying. The authority’s contingent liabilities in the next few years, according to former NHAI chairman Brijeshwar Singh, could be ‘more than double’ NHAI’s hard liabilities of Rs 1.5 lakh crore.

Moreover, NHAI has failed to set aside the mandatory sum half-yearly, from its income in a reserve fund, the Comptroller and Auditor General (CAG), has pointed out. This amount should be sufficient to liquidate the loan within a period which shall not in any case exceed thirty years. “However, NHAI has not created such reserve fund as contemplated in NHAI rules,” the CAG noted.