Road Monetisation

At the heart of the monetisation game, companies are betting on two pillars: In-app purchases and revenue from advertising

Govt panel pulls up several bodies for slow monetisation, sets new targets

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 ...

Construction target being revised after Gadkari unhappy over low 12,500 km aim

The success of the Centre's recently announced national monetisation pipeline (NMP) plan hinges critically on road assets, rating agency Crisil said on Monday.

The road ministry and the NHAI have finalised the proposal after some investors approached them to allow them a board seat on the SPV concerned

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

Execution key to making asset monetisation pipeline work

A similar proposal is being considered for other infrastructure assets with other government departments

Says call on monetising projects taken by independent investment manager

The govt had to earlier cancel the second package of TOT because of tepid response while the third package ran into funding troubles for the Singapore-based operator Cube Highways

The road developer will be tasked with the operation, maintenance and management of the contract

The road projects also have some inherent challenges, according to industry experts

The Cabinet in 2016 had authorised the NHAI to monetise 75 public-funded national highway projects using the TOT model

The Union road transport ministry and the National Highways Authority of India (NHAI) have decided to reduce by half the size of road monetisation projects in the next round of bids. The next round for TOT (toll, operate, transfer) projects would have a handful projects totalling about $500 million, from $1 billion earlier."The total project size has been reduced to half but the packages would still be in the range of $200-220 million," an NHAI official told Business Standard. Essentially, he explained, for faster completion of the tendering process.The process for the first tranche of road monetisation is underway and 10 bidders have bid for the nine TOT contracts. "By January 7, we should be able to award the projects. By the end of March 2018, revenue would start coming in," the official said.Investors, including global pension funds and private equity firms, have shown interest in India's infrastructure sector. The selection of projects to be bid out in the first round was done ..

Auction can be seen as a move to allow the entry of sovereign funds from Abu Dhabi and Qatar