NHAI Sets A Strong Pace: Achieves 75 Per Cent Of FY24 User Revenue Within Five Months, Aided By Record Toll Collections

The National Highways Authority of India (NHAI) has obtained a sum of Rs 15,605 crore from the government, representing 75 per cent of the expected user revenue for the current fiscal year. This achievement is attributed to the strong performance of toll collections.

For FY24, the NHAI is expected to receive Rs 20,807 crore from toll collections, compared to the revised estimate of Rs 18,005 crore for FY23, according to Financial Express report.

According to official sources, the growing revenue collections have facilitated the allocation of three-fourths of the revenue for the entire year within the initial five months and NHAI may ultimately exceed the budgeted estimates for the full year.

During the months of April to June in FY24, the NHAI recorded an average monthly toll collection of Rs 4,406 crore, higher than the average of Rs 4,083 crore in the previous quarter (January to March).

In FY23, the NHAI's average monthly toll collection was Rs 3,841 crore, as per the FE report.

In the past two years, the government has taken on the full responsibility of funding NHAI's debt servicing and future investment needs as the organisation's debt has increased.

However, with the need for funds growing to support the ambitious highway building program, the government is relying on the rising toll revenues and asset monetisation to bear a larger part of the burden.

NHAI has set a capital investment target of Rs 1.62 trillion for this year, compared to Rs 1.41 trillion last year.

The total toll collections at highways, which include both government-funded stretches and those run by private concessionaires, increased to Rs 48,028 crore in FY23, up from Rs 33,907 crore in the previous year.

Around 40 per cent of the total collections go to NHAI, while approximately 50 per cent is collected by private highway operators.

The remaining funds are allocated to other highway building arms of the government, such as National Highways & Infrastructure Development Corporation Ltd (NHIDCL) and the Road Wing of the Ministry of Road Transport and Highways.

Apart from Rs 20,807 crore from toll collections and Rs 10,000 crore from the monetisation of National Highways Fund, the remaining amount will be provided by the government.

NHAI's debt servicing cost amounts to Rs 31,714 crore, which includes Rs 25,489 as interest and Rs 6,225 as principal repayment.

Minister of Road Transport and Highways, Nitin Gadkari, has expressed confidence that toll collection will reach Rs 1.3 trillion by 2030.

This target will be achieved through the combination of increasing traffic, expanding the length of highways, and periodic revision of toll rates.