Monetisation Of Highways

Rating agency ICRA on Thursday said state-owned NHAI's targeted asset monetisation of road assets could fetch the government up to Rs 60,000 crore in the current fiscal year. In April 2024, the National Highways Authority of India (NHAI) had released an indicative list of 33 road assets it plans to monetise in FY2025, through a mix of toll-operate-transfer (TOT) and sale to the NHAI's Infrastructure Investment Trust (InvIT). These assets are spread across 12 states, cumulatively spanning nearly 2,750 km and with an annual toll collection of Rs 4,931 crore. "ICRA estimates a monetisation potential of Rs 53,000 crore to Rs 60,000 crore from the sale of 33 road assets through TOT/ InvIT mode," it said. NHAI intends to club the 33 identified assets into large (more than Rs 6,000 crore), medium (about Rs 3,000 crore - Rs 4,000 crore) and smaller bundles (Rs 1,000-3,000 crore), for different types of investors. Under the government's National Monetisation Pipeline (NMP), road sector ...

State-owned National Highways Authority of India (NHAI) has identified 33 highway stretches cumulatively spanning 2,741 kilometres to monetise during the current financial year through toll operate transfer (TOT) and infrastructure investment trust (InvIT) modes. The identified stretches include Lucknow-Aligarh, Kanpur-Ayodhya-Gorakhpur, and Bareilly-Sitapur in Uttar Pradesh, Gurugram-Kotputli-Jaipur bypass and Jaipur-Kishangarh in Rajasthan, Panikoili-Rimuli in Odisha, Chennai bypass in Tamil Nadu, and Muzaffarpur-Darbhanga-Purnia highway in Bihar. "The asset would be monetized through ToT/InvIT modes. "NHAI will have discretion to review and change the above list and modes of monetization," the agency said. NHAI has raised Rs 40,314 crore through various modes of asset monetisation in 2023-24 against the target of Rs 28,868 crore. NHAI's asset monetisation has crossed Rs 1 lakh crore till date. The Ministry of Road, Transport and Highways (MoRTH) had raised Rs 32,855 crore in .

The central government and Central Public Sector Enterprises are estimated to monetise assets worth Rs 1.50 lakh crore in the current fiscal, a tad lower than the targeted of Rs 1.75 lakh crore, a senior official said. Under the National Monetisation Pipeline, the aggregate monetisation potential of the central government's brownfield infrastructure assets has been estimated at Rs 6 lakh crore over a four-year period, from FY 2022 to FY 2025. In an interview to PTI TV, the Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said about Rs 1.75 lakh crore was the target for asset monetization this year and "we are going to achieve something like Rs 1.50 lakh crore through monetisation". Pandey said monetisation is going on through infrastructure investment trust (InvITs), Toll Operate Transfer (TOT) in mining, road and power sector and is beginning to happen in the petroleum sector. "The asset monetisation proceeds do not visibly appear in the ..

With 4,000 kilometers to 4,500 kilometers (2,796.2 miles) of new roads likely to be commissioned annually by the National Highways Authority of India over the next three years

The govt's asset monetisation plan was on track last year as it surpassed its target in FY22. But what is the current situation like? Is the plan on track to meet the target in the current fiscal too?

The decision assumes significance as MoR has been lagging behind in achieving its targets under the National Monetisation Pipeline (NMP) of the Centre, during the last fiscal year

Leasing government-owned land would be easier and should be accorded higher priority

Monetisation of road assets holds the key here as it accounts for 27 per cent of the NMP in value terms

NHAI has planned an InvIT, but it has seen multiple deferments over the Covid disruptions. But a Rs 5,100-cr InvIT is now likely next month

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The plan covers 20 asset classes spread over 12 line ministries and departments

The idea is to welcome more private investment and boost the economy through highway construction, said Sandhu

The total length of National Highways at present is abut 150,000 km, or about 2 per cent the length of all the roads, but they carry about 40 per cent of the total trafficMwwgh

TOT is an asset monetisation model, where the government transfers the right to operate and maintain a highway to successful bidder for a period of 30 years.

Funds generated from highway monetisation would be used for new infrastructure programmes such as the Bharatmala