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 Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..