NHAI Unlocks Rs.20,000 Crore Via InvITs
ROADS & HIGHWAYS

NHAI Unlocks Rs.20,000 Crore Via InvITs

NHAI's monetization efforts are part of a larger plan to raise funds for ongoing and future highway projects. The funds generated will support the construction of new highways, maintenance of existing ones, and enhancement of road safety measures. This approach also aims to reduce the financial burden on the government by tapping into private sector investments.

The process involves creating special purpose vehicles (SPVs) for road assets, which are then transferred to InvITs. These trusts pool investments from various investors and distribute dividends generated from the toll revenues of these road projects. NHAI has successfully used InvITs in the past, and this continued strategy reflects its commitment to innovative financing mechanisms.

The proposed monetization will focus on completed and operational highways with a proven track record of revenue generation. This ensures that investors have confidence in the stability and profitability of their investments. The government is also considering regulatory and policy support to make these investments more attractive, including tax incentives and streamlined approval processes.

This initiative is expected to not only provide NHAI with much-needed funds but also contribute to the overall growth of the Indian economy by improving infrastructure quality, reducing transportation costs, and boosting trade and commerce. By involving private investors in public infrastructure projects, the government aims to accelerate development while maintaining fiscal prudence.

NHAI's monetization efforts are part of a larger plan to raise funds for ongoing and future highway projects. The funds generated will support the construction of new highways, maintenance of existing ones, and enhancement of road safety measures. This approach also aims to reduce the financial burden on the government by tapping into private sector investments. The process involves creating special purpose vehicles (SPVs) for road assets, which are then transferred to InvITs. These trusts pool investments from various investors and distribute dividends generated from the toll revenues of these road projects. NHAI has successfully used InvITs in the past, and this continued strategy reflects its commitment to innovative financing mechanisms. The proposed monetization will focus on completed and operational highways with a proven track record of revenue generation. This ensures that investors have confidence in the stability and profitability of their investments. The government is also considering regulatory and policy support to make these investments more attractive, including tax incentives and streamlined approval processes. This initiative is expected to not only provide NHAI with much-needed funds but also contribute to the overall growth of the Indian economy by improving infrastructure quality, reducing transportation costs, and boosting trade and commerce. By involving private investors in public infrastructure projects, the government aims to accelerate development while maintaining fiscal prudence.

Next Story
Infrastructure Urban

Our urban initiatives set a benchmark for projects across India

The Nagpur Smart and Sustainable City Development Corporation (NSSCDCL) has bagged an excellence award for being a leader in creating healthy streets in Indian cities. Soumya Sharma Chandak, Chief Executive Officer (CEO), tells R SRINIVASAN what led to this achievement and elaborates upon other successes and plans. Excerpts from the conversation:What key factors contributed to NSSCDCL winning the excellence award for creating healthy streets in India?We won this award for our efforts to suggest juncti..

Next Story
Infrastructure Urban

Construction Sector Results

The Indian construction sector demonstrated both growth opportunities and notable challenges in the first half of FY2024-25, driven by a mix of economic, operational and policy factors. The sector’s total consolidated operating revenue across all segments (Ultra Large, Large, Medium, and small construction companies) reached approximately Rs.70,871 crore in H1 FY25, compared to Rs.67,126 crore in H1 FY24, reflecting a year-on-year growth of about 5.6 per cent. When including Larsen & Toubro (L&T), the largest player in  the sector,..

Next Story
Infrastructure Transport

India must focus on building resilient road infrastructure

Vadodara-based firm Zydex Industries has developed a silane nanotechnology-based product for road construction that can resist cracking under heavy traffic loads and cyclic weather. The company is using nano-polymer and silane to make roads free of potholes and cracks, thanks to their anti-strip property and enhanced resistance to moisture damage. The company has also developed a technology to make aggregates waterproof, thus forming a skin-like layer that is water-resistant and prevents the formation of potholes. Himanshu Agarwal, Chief Operating Officer, Zydex Industries, speaks about g..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000