What is this big issue about NHAI debt and how big a concern is it for the Indian stock markets?
Answer
Answer
The worsening debt situation at the NHAI recently become apparent when the PMO called the top brass of NHAI and the ministry and asked them to stop road building and focus on monetizing existing assets. The concern pertains to the massive pile up of debt at NHAI. The picture is actually one of rapidly rising debt. For example, in March 2015, the NHAI had total debt of Rs.24,800 crore. In the last 4½ years the total debt burden of NHAI has burgeoned to Rs.178,000 crore. What is interesting is that the annual interest payout on this debt is Rs.25,000 which is more than the total debt of NHAI just 4 years back. It is in this background that PMO had intervened to take quick and decisive action on this subject.