NEW DELHI: The length of highways under tolling is likely to increase almost three-fold by 2024-25 and is expected to take NHAI ’s annual toll collection to Rs 64,000 crore, nearly five times the current mop-up.

The projections have been made at a time when the government is trying to put a check on NHAI’s growing borrowings, which are likely to cross Rs 2.2 lakh crore by March.

According to the budget estimates, while NHAI’s share of cess from fuel would increase from Rs 16,100 crore in 2019-20 to Rs 20,750 crore in 2020-21, the agency will be allowed to raise up to Rs 65,000 crore next year, a reduction of nearly 15% from the current financial year.

“Borrowing will decline steadily in the coming years, which is a positive sign. This will happen as our expenses for acquiring land will reduce and expenditure for construction will increase,” an official said. He added that the government’s announcement of 100% tax exemption to sovereign wealth funds’ income from interest, dividend and capital gains would prove to be a boon to get long tenure finance at nominal interest rates.

Officials said increased allocation of fuel cess, monetisation of completed highway projects and higher toll collection would help improve NHAI’s financial health, which is critical to accelerate highway development in the country.

The government has set a target of building and expanding an additional 60,000 km by 2024-25. While NHAI will develop stretches that are crucial for increased economic activities, other wings of the road ministry will build stretches that are necessary to improve connectivity.

“Now, the policy has been made very clear that every road won’t be declared as a National Highway as this increases the financial burden on the Centre. State governments’ support to acquire land and sharing a portion of the land cost will be crucial,” the official said.

