States to implement centre’s asset monetization strategy
ECONOMY & POLICY

States to implement centre’s asset monetization strategy

States that are short on cash may soon adopt the central government's asset monetization strategy to raise money.

The states of Rajasthan, Maharashtra, Odisha, Madhya Pradesh, and Karnataka are among those that have reportedly expressed interest in making money off of their completed infrastructure projects.

These completed projects include the states' completed electricity transmission and road systems. The federal government's asset monetization strategy is modelled on a similar strategy used in Australia.

"The federal government has a Model Concession Agreement (MCA) in place for the monetization of completed projects, and the same may be copied by the states for their monetization push," said Vijay Chhibber, Director General of the Energy Power Transmission Association (EPTA).

Based on the success of such projects by the central government, the public works departments (PWD) in the states will implement the monetization push for state highways and other infrastructure assets.

When asked whether there was enough investor appetite for these projects, Chhibber said, “Global pension funds have shown interest in the completed infrastructure projects.”

The model, according to experts, is a step in the right direction. Reports indicate that the approach did not have the desired level of success in Australia.

In order to raise Rs 10,000 crore through the Infrastructure Investment Trust, or InvIT method, the National Highways Authority of India (NHAI) is preparing for yet another asset monetization drive.

The Securities and Exchange Board of India regulates InvIT, a mutual fund-like investment trust (SEBI). In this exercise in asset monetization, investors fund an InvITe where assets are placed, and the revenue earned from those assets is distributed as dividends.

Along with InvIT, the government also uses the TOT, or toll-operate-transfer, model for asset monetization. As part of an asset recycling scheme, privately owned companies have been granted long-term concessions to use existing National Highways.

The Union Cabinet gave the NHAI permission to create an InvIT and monetize national highway projects in December 2019.

The action was taken to give NHAI the ability to monetize finished national highways that have a history of at least one year of toll collection and it reserves the right to charge toll on the designated roadway.

See also:
L&T to sell 8 roads, transmission project to Edelweiss
Maple Highways completes purchase of NCR expressway


States that are short on cash may soon adopt the central government's asset monetization strategy to raise money. The states of Rajasthan, Maharashtra, Odisha, Madhya Pradesh, and Karnataka are among those that have reportedly expressed interest in making money off of their completed infrastructure projects. These completed projects include the states' completed electricity transmission and road systems. The federal government's asset monetization strategy is modelled on a similar strategy used in Australia. The federal government has a Model Concession Agreement (MCA) in place for the monetization of completed projects, and the same may be copied by the states for their monetization push, said Vijay Chhibber, Director General of the Energy Power Transmission Association (EPTA). Based on the success of such projects by the central government, the public works departments (PWD) in the states will implement the monetization push for state highways and other infrastructure assets. When asked whether there was enough investor appetite for these projects, Chhibber said, “Global pension funds have shown interest in the completed infrastructure projects.” The model, according to experts, is a step in the right direction. Reports indicate that the approach did not have the desired level of success in Australia. In order to raise Rs 10,000 crore through the Infrastructure Investment Trust, or InvIT method, the National Highways Authority of India (NHAI) is preparing for yet another asset monetization drive. The Securities and Exchange Board of India regulates InvIT, a mutual fund-like investment trust (SEBI). In this exercise in asset monetization, investors fund an InvITe where assets are placed, and the revenue earned from those assets is distributed as dividends. Along with InvIT, the government also uses the TOT, or toll-operate-transfer, model for asset monetization. As part of an asset recycling scheme, privately owned companies have been granted long-term concessions to use existing National Highways. The Union Cabinet gave the NHAI permission to create an InvIT and monetize national highway projects in December 2019. The action was taken to give NHAI the ability to monetize finished national highways that have a history of at least one year of toll collection and it reserves the right to charge toll on the designated roadway. See also:L&T to sell 8 roads, transmission project to Edelweiss Maple Highways completes purchase of NCR expressway

Next Story
Infrastructure Urban

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Next Story
Infrastructure Transport

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Next Story
Infrastructure Transport

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?