India Ratings and Research (Ind-Ra) has assigned National Highways Authority of India's (NHAI) proposed Rs 240 billion tax-free bonds a long-term 'IND AAA' rating with stable outlook.

NHAI, being the sole agency responsible for the development of national highways in India, is strategically important to the government of India (GoI) to not only improve road infrastructure but also develop national highways as a catalyst for sustained economic growth. NHAI's tax exemption status and the privileges of raising funds through capital gains bonds and tax-free bonds reiterate its importance for the central government.

Achievement in terms of projects completed (completion as a percentage of targets) declined to 75.05% in FY15 from 88.9% in FY13. Achievement in terms of contracts awarded improved to 54.16% in FY15 from 14.9% in FY13. Ind-Ra expects NHAI's completion efficiency and award efficiency to improve in FY16 as by end-July it had already awarded 29.28% of its annual target and completed 30.85% of its target for the fiscal year.