How India is monetising its road assets

31 Oct 2022 CW Team

Monetisation of assets is key to the survival of operators while also empowering bodies like MoRTH and NHAI with the requisite funds required to keep building infrastructure projects.

As we scale up the pace of infrastructure building in India, one of the primary concerns is also unlocking the investment value of these assets to generate long-term patient capital that can be used for further public good, mainly in infrastructure projects.

In any road project,80-85 per cent of NHAI’s expenditure goes into construction and land acquisition, hence monetisation of assets remains an important aspect. Moreover, the National Monetisation Pipeline (NMP) has mandated thatRs 1.6 lakh crore of monetisation should come from the roads and highways sector out of a total of Rs 6 lakh crore. “To achieve this target, different approaches ranging from InvITs and TOTto HAM,have been utilised,” says Anand Kulkarni, Director, CRISIL. “In the current scenario,InvITs have played out well for NHAI. Though TOT models have also been utilised to raise funds, the response has been a mixed bag – 50 per cent of the projects have been awarded under TOT however half these projects have been cancelled. Hence, it is safe to say that the InvIT model will continue to play a key role in monetisation of assets.However, challenges remain.”

Market gurus point out that though NHAI is announcing and awarding projects,in many casesit is unable to complete the land acquisition in time. Keeping this in mind in the initial bidding itself, extra costs are considered.However,as the inflationary period begins,NHAI is compensating it by way of the wholesale price index (WPI) but the real inflation is much higher. This,in turn, is creating a cost pressure.

To read the full article, CLICK HERE...

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..