NHAI’s first asset monetization plan to spur expansion in the road industry
The National Highways Authority of India (NHAI) unveiled its first-ever “Asset Monetization Strategy for the Road Sector” on Monday in an effort to unlock the value of functioning National Highway assets.
The goal of the action is to increase public-private partnerships (PPPs) in the construction of infrastructure in India.
The plan marks a significant turn toward sustainable, market-driven infrastructure funding and is in line with the government’s goal under the Assets Monetization Plan-2025–30.
The Ministry of Road Transport and Highways claims that the plan offers a well-organized framework that offers a solid blueprint for capital mobilization through securitization models, infrastructure investment trusts (InvITs), and toll-operate-transfers (ToT).
Through the National Monetization Pipeline, these tools have assisted NHAI in raising about Rs 1.4 lakh crore for more than 6,100 kilometers of national highways.
Value naximization of government road assets, process transparency and information sharing pertinent to investors, and market growth through expanding the investor base and encouraging stakeholder participation are the three main pillars upon which the approach is built.
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According to NHAI Chairman Santosh Kumar Yadav, “NHAI’s unique approach to asset monetization not only ensures financial sustainability but also opens opportunities for the private sector, leverages advanced technologies, and enhances the quality and longevity of our road assets.”
If this plan is implemented successfully, NHAI will have a consistent flow of funding, which will lessen our dependency on conventional funding sources, Yadav continued.
NHAI has been using a variety of monetization tools with success. The country’s National Highway framework was developed in part because of the NHAI’s asset monetization efforts, which are essential to releasing the value of the road network.
In order to maximize the advantages of asset monetization, this article presents a strategic framework. In order to provide transparency and build investor confidence, it highlights the necessity of a systematic approach to asset identification and valuation, according to N.R.V.V.M.K. Rajendra Kumar, Member Finance, NHAI.