Road to Asset monetisation
ROADS & HIGHWAYS

Road to Asset monetisation

In the last fiscal, India’s premier road construction authority, the National Highways Authority of India (NHAI), kept up the rapid expansion momentum of recent years, constructing over 30 km of roads daily while new highway awards topped 12,375 km. Such diligent expansion of the country’s highway network in recent years has left the authority with a massive Rs.3.42 trillion debt (at the end of March 2023).

Not surprisingly, the Government is now intently focusing on mopping up funds from the private sector to further expand the existing highway network and service the highway authority’s debt. A proposed National Monetisation Plan (NMP) detailed in 2021 estimated raising Rs.6 trillion through the core assets of the Central Government between 2021 and 2026. Monetising 26,700 km of four-lane and above national highways was expected to contribute 27 per cent (`1.6 trillion) of this sum.

Crisil has estimated that NHAI’s need for funds will double to Rs.10 trillion over the next five-year period vis-à-vis the previous five years, and that 15 per cent of this sum could be generated by the monetisation of assets. It has also estimated that if this funding comes through, NHAI could construct 25,000 km of national highways between 2022 and 2026, compared to 17,228 km between 2017 and 2021.

Infra trusts to the rescue

To support the Government’s NMP, in October 2021, NHAI created the National Highways Infra Trust (NHAI InvIT), an infrastructure investment trust. 

“Asset monetisation through the NHAI InvIT will play a big role in the repayment of principal amounts so that NHAI achieves its plan to significantly reduce its current outstanding debt by 2029-30,” notes Puneet Narang, Partner, Major Projects, Business Consulting, KPMG in India. “Essentially, the NMP aims at tapping into institutional and private-sector investment for the creation of new infrastructure.”

To read the full story, CLICK HERE.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

In the last fiscal, India’s premier road construction authority, the National Highways Authority of India (NHAI), kept up the rapid expansion momentum of recent years, constructing over 30 km of roads daily while new highway awards topped 12,375 km. Such diligent expansion of the country’s highway network in recent years has left the authority with a massive Rs.3.42 trillion debt (at the end of March 2023).Not surprisingly, the Government is now intently focusing on mopping up funds from the private sector to further expand the existing highway network and service the highway authority’s debt. A proposed National Monetisation Plan (NMP) detailed in 2021 estimated raising Rs.6 trillion through the core assets of the Central Government between 2021 and 2026. Monetising 26,700 km of four-lane and above national highways was expected to contribute 27 per cent (`1.6 trillion) of this sum.Crisil has estimated that NHAI’s need for funds will double to Rs.10 trillion over the next five-year period vis-à-vis the previous five years, and that 15 per cent of this sum could be generated by the monetisation of assets. It has also estimated that if this funding comes through, NHAI could construct 25,000 km of national highways between 2022 and 2026, compared to 17,228 km between 2017 and 2021.Infra trusts to the rescueTo support the Government’s NMP, in October 2021, NHAI created the National Highways Infra Trust (NHAI InvIT), an infrastructure investment trust. “Asset monetisation through the NHAI InvIT will play a big role in the repayment of principal amounts so that NHAI achieves its plan to significantly reduce its current outstanding debt by 2029-30,” notes Puneet Narang, Partner, Major Projects, Business Consulting, KPMG in India. “Essentially, the NMP aims at tapping into institutional and private-sector investment for the creation of new infrastructure.”To read the full story, CLICK HERE.

Next Story
Real Estate

Colliers India Transacts 207,000 sq ft office space at Embassy TechVillage

Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced that it has signed an Agreement to Lease (‘ATL’) with global cyber security company Rubrik at Embassy TechVillage in Bengaluru.Colliers, a leading global diversified professional services company, specialising in commercial real estate services, engineering consultancy and investment management facilitated the transaction for Rubrik.Located on Bengaluru’s Outer Ring Road, Embassy TechVillage is one of Embassy REIT’s flagship office parks which offers world-class office spaces, ..

Next Story
Infrastructure Urban

Ensemble Infrastructure India Appoints Suman Saha as Director of Design

Ensemble Infrastructure India Ltd, a leading workplace design and build fit-out company, has appointed Suman Saha as its new Director of Design. With 25 years of experience in the industry, Suman is recognized for his innovative approach and excellence in design leadership.Working closely with the CEO, Suman’s appointment will enhance the company’s design communication across multiple touchpoints, ensuring smooth collaboration between clients, designers, and execution teams for superior project outcomes. Under his guidance, Ensemble will focus on creating workspaces and design labs that em..

Next Story
Products

Ribbon Vanity by Küche7: Fluid Design Meets Everyday Elegance

Küche7, pioneers in luxury stainless steel kitchens, have unveiled the Ribbon Vanity, a graceful creation that transforms bathroom spaces with its soft, flowing design and understated sophistication. Inspired by the fluid form of a ribbon, this vanity combines smooth finishes, clean lines, and gentle curves, offering a timeless aesthetic that seamlessly complements diverse interior styles.Available in a refined blush pink hue, the Ribbon Vanity effortlessly merges functionality with elegance. With thoughtfully designed storage options, it ensures that bathroom essentials are neatly organised ..

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