Centre to emulate NHAI asset monetisation

<div>Centre plans to raise $11 billion by monetising and recycling operational assets. These assets are mostly under the possession of state-owned firms such as transmission lines, telecom towers, power plants, railway tracks and ports, which, when sold, can act as resources for infrastructure development.&nbsp;</div> <div><br /> </div> <div>The asset monetisation planned by the Ministry of Road, Transport and Highways (MoRTH) - for NHAI - has set the trend for recycling assets in other sectors too. The Ministry monetised its road assets constructed with public funds through the toll-operate-transfer (TOT) scheme. 'The scheme envisaged bidding of bundled National Highways for a concession period of 30 years to concessionaires against upfront payment of a lump-sum amount. O&amp;M obligations are with the concessionaire during the concession period,' said a report shared by the Ministry. In the first round of bidding completed by NHAI for TOT projects, a bundle of nine project stretches (680 km in length) have been bid out. The H1 bidder quoted a concession fee of Rs 96.81 billion against NHAI's estimated Rs 62.58 billion. DPR preparation is in progress for bundle two, three and four of the TOT projects.&nbsp;</div> <div><br /> </div> <div>The Ministry of Finance is reportedly planning to extend this asset monetisation method to other sectors too. The Department of Investment and Public Asset Management (DIPAM) is drafting a Cabinet note on the proposal. Instead of going to the consolidated fund of India, the money comes to the same agency for investment in infrastructure development, wherein the Finance Minister is expecting a surge in injection of funds by 10 per cent. While highway assets were monetised through TOT, assets in other sectors will be sold and the money transferred to a trust fund. PSUs will keep owning the assets and may continue to operate them.</div>