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

Next Story
Products

TOTO India Launches Premium G & L Showers with Sleek Faucet Range

TOTO India has launched its G Shower and L Shower series, alongside an expanded range of GT, LH, and Pull-Out lavatory faucets. The collection blends advanced technology, refined aesthetics, and everyday comfort, staying true to TOTO’s philosophy of creating spaces that are both beautiful and functional. The G Shower series delivers the 3Rs of showering: Relaxing, Refreshing, and Revitalizing. Features include the Calming Shawl spray mode, Warm Spa technology, and multiple overhead and hand-shower options across eight finishes. The L Shower complements this with easy-to-use controls sui..

Next Story
Infrastructure Energy

Hero Future Energies Secures Funding for 120 MW Hybrid Project

Hero Future Energies (HFE), through its SPV Clean Renewable Energy Hybrid Three, has secured Rs 19.08 billion in funding from the State Bank of India (lead) and Canara Bank. The funds will be used to develop and construct HFE’s 120 MW renewable energy hybrid project at Kurnool, Andhra Pradesh. The project, contracted with SJVN, integrates wind, solar, and storage technologies to deliver reliable peak power. With a 21-year repayment period, the funding ensures timely execution and the commencement of commercial operations. The financial closure demonstrates continued lender confidence in..

Next Story
Infrastructure Energy

IOC GPS Renewables Raises Rs 8.36 billion Debt for Compressed Biogas Plants

IOC GPS Renewables Private Limited (IGRPL), a joint venture between IndianOil Corporation  and GPS Renewables, has raised Rs 8.36 billion (approx. US$ 95 million) in debt financing from Indian Bank to execute nine Compressed Biogas (CBG) projects across India.   The funding is the largest single-bank debt raise in the CBG sector and the first fully non-recourse financing in India for these projects. The plants—four in Haryana, three in Uttar Pradesh, one each in Chhattisgarh and Andhra Pradesh—will each produce 15 tonnes of CBG per day using paddy straw as feedstock. All nin..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?