Audit impossible: CAG flags lack of NHAI project-wise borrowing data

India's Comptroller and Auditor General (CAG) has raised concerns over the National Highways Authority of India's (NHAI) failure to maintain project-wise records of its borrowing costs. This lack of detailed financial data has rendered auditing of these significant borrowings impossible.

The CAG's audit report indicates that the NHAI does not keep records that specifically link borrowing costs to individual highway projects. This practice makes it difficult to ascertain the financial efficiency and accountability of each project undertaken by the authority.

With the NHAI undertaking numerous large-scale infrastructure projects, accurate and transparent financial management, including detailed tracking of borrowing expenses, is crucial. The absence of such project-wise data presents a significant challenge for regulatory oversight and financial scrutiny, potentially impacting the overall fiscal health of the highway development program.