States to implement centre’s asset monetization strategy

14 Dec 2022 CW Team

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.

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

Infrastructure Urban

17 Sep 2025

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Real Estate

17 Sep 2025

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Infrastructure Transport

17 Sep 2025

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..