+
NHAI looks to monetise 7,500 km roads
ROADS & HIGHWAYS

NHAI looks to monetise 7,500 km roads

The National Highways Authority of India (NHAI) is planning to monetise around 7,500 km of road projects estimated to be worth Rs 3 lakh crore.

The projects, which are mostly greenfield expressways and access-controlled highways, will be completed by 2024-25, and are likely to be monetised through different models. Two greenfield expressways are said to be ready by 2022.

NHAI plans to raise Rs 20,000- Rs 25,000 crore through the special purpose vehicle (SPV) model, and Rs 10,000 crore through the toll-operate-transfer (TOT) model in 2021-22, a NHAI official told the media. A second infrastructure investment trust (InviT) for NHAI worth Rs 6,000 crore (approximately) is also in the pipeline for the next financial year (FY).

Another official said the NHAI is ready with a pipeline of projects to be monetised in FY22, depending largely on market response to certain models.

The Union Budget has promised the establishment of a “professionally managed” development finance institution (DFI). The DFI has been proposed to be capitalised with Rs 20,000 crore and is expected to have a lending portfolio of at least Rs 5 lakh crore within three years, the minister had said. Recently, the government has also announced that the DFI would be fully government-owned.


Make in Steel 2021

24 February 

Click for event info


4th Indian Cement Review Conference 2021

17-18 March 

Click for event info


The DFI would be essential for financing greenfield infrastructure projects and efficient implementation of the national infrastructure pipeline (NIP), and the immediate launch of the national monetisation pipeline. The government has allocated Rs 20,000 crore in the budget to capitalise on the DFI. The national monetisation pipeline and asset monetisation dashboard will provide enabling mechanisms for asset monetisation.

The authority has been keen on the special purpose vehicle (SPV) as a model for monetisation. The SPV will raise debt on its balance sheet, while NHAI will retain the operational control during construction, operation and maintenance periods. NHAI and SPV shall collect the toll on the projects housed in SPV shall get the annuity payments without any construction and tolling risks.

Last year, NHAI had formed an SPV for financing the Delhi-Mumbai Expressway.

Image: This decision marks another effort to raise money from road tolls. Under PPP, this model has borne mixed results in the past.


Also read: Understanding the asset monetisation push

Also read: Road projects worth Rs 25 lakh crore to be developed

The National Highways Authority of India (NHAI) is planning to monetise around 7,500 km of road projects estimated to be worth Rs 3 lakh crore. The projects, which are mostly greenfield expressways and access-controlled highways, will be completed by 2024-25, and are likely to be monetised through different models. Two greenfield expressways are said to be ready by 2022. NHAI plans to raise Rs 20,000- Rs 25,000 crore through the special purpose vehicle (SPV) model, and Rs 10,000 crore through the toll-operate-transfer (TOT) model in 2021-22, a NHAI official told the media. A second infrastructure investment trust (InviT) for NHAI worth Rs 6,000 crore (approximately) is also in the pipeline for the next financial year (FY). Another official said the NHAI is ready with a pipeline of projects to be monetised in FY22, depending largely on market response to certain models. The Union Budget has promised the establishment of a “professionally managed” development finance institution (DFI). The DFI has been proposed to be capitalised with Rs 20,000 crore and is expected to have a lending portfolio of at least Rs 5 lakh crore within three years, the minister had said. Recently, the government has also announced that the DFI would be fully government-owned.Make in Steel 202124 February Click for event info4th Indian Cement Review Conference 202117-18 March Click for event info The DFI would be essential for financing greenfield infrastructure projects and efficient implementation of the national infrastructure pipeline (NIP), and the immediate launch of the national monetisation pipeline. The government has allocated Rs 20,000 crore in the budget to capitalise on the DFI. The national monetisation pipeline and asset monetisation dashboard will provide enabling mechanisms for asset monetisation. The authority has been keen on the special purpose vehicle (SPV) as a model for monetisation. The SPV will raise debt on its balance sheet, while NHAI will retain the operational control during construction, operation and maintenance periods. NHAI and SPV shall collect the toll on the projects housed in SPV shall get the annuity payments without any construction and tolling risks. Last year, NHAI had formed an SPV for financing the Delhi-Mumbai Expressway.Image: This decision marks another effort to raise money from road tolls. Under PPP, this model has borne mixed results in the past. Also read: Understanding the asset monetisation push Also read: Road projects worth Rs 25 lakh crore to be developed

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code