NHAI's new financial plan

The National Highways Authority of India (NHAI) is in the process of preparing a new draft plan as its earlier proposals were rejected by the Planning Commission citing that NHAI would find it difficult to borrow funds from the market. In its financing plan, NHAI had raised the overall fund requirement from Rs 8.12 lakh crore to Rs 9.71 lakh crore and had pegged borrowings at Rs 2.56 lakh crore. NHAI had submitted a financing plan in July 2010 asking for permission to borrow more funds, than the Rs 1.92 lakh crore approved earlier, from the market by 2030-31. The Planning Commission had rejected the plan saying NHAI may not have the capacity to raise funds to the extent quoted in the plan and in case it borrows the money, others might be starved of funds. Sources say that the Planning Commission has internal issues on the matter and that is why it was taking time.