NHAI's project awarding and asset monetisation updates for FY24

05 Sep 2023 CW Team

As of August 2023, NHAI had awarded projects covering a total distance of 170 kilometres, and construction work had commenced on projects totalling 1,215 kilometres. The awarding of projects under the Hybrid Annuity Model (HAM) continued to dominate both in terms of value and the number of projects awarded, with 73 kilometres awarded, worth Rs 19 billion over the April to July 2023 period.

FAStag toll collections witnessed a 14.4 per cent year-on-year increase from April 2023 to July 2023, accompanied by a 21.7 per cent year-on-year increase in collection value. This growth in toll collections is instrumental in expediting the monetisation of road assets by the Ministry and offers advantages to companies seeking to monetise their existing toll assets.

Asset monetisation remains a focal point for NHAI, with a list of 46 projects spanning over 2,612 kilometers earmarked for monetisation in FY24. NHAI's target for FY24 is to raise between Rs 100 billion to Rs 150 billion through asset monetisation under the Toll-Operate-Transfer (ToT) strategy. In total, NHAI aims to generate up to Rs 450 billion through monetisation in FY24, utilising various funding models, including Infrastructure Investment Trusts and the securitisation of road assets constructed by NHAI's Special Purpose Vehicles (SPVs).

Steel prices have seen a decrease of approximately 25 per cent, while aluminum prices have declined by about 33 per cent since April 22. In contrast, cement prices have raised by around 5 per cent from their lows in July 22, primarily due to input cost pressures. With a stable outlook for commodity prices, road contractors anticipate an improvement in profitability and margins in FY24.

Despite a slower pace of project awarding until August 2023, there exists a robust pipeline of tenders. Entities with substantial order backlogs, strong financial positions, and diverse sector engagement are well-positioned to benefit from NHAI's proactive approach to project allocation in FY24. Motilal Oswal's top choice in this sector is KNR Constructions Ltd.

If you want to learn more about Indian Roads, make sure you sign-up for the India Roads Conference at the India Construction Festival on October 12th in New Delhi

Click HERE and reserve your seats! Or call Deepali on 82919 95574....

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

According to Motilal Oswal Financial Services, from April to July 2023, the National Highways Authority of India (NHAI) awarded a total of eight projects, compared to 12 projects awarded during the same period in FY23. The cumulative length of these awarded projects during April to July 2023 was approximately 160 kilometres, down from the 250 kilometres awarded in April to July 2022, with a total value of Rs 25 billion.As of August 2023, NHAI had awarded projects covering a total distance of 170 kilometres, and construction work had commenced on projects totalling 1,215 kilometres. The awarding of projects under the Hybrid Annuity Model (HAM) continued to dominate both in terms of value and the number of projects awarded, with 73 kilometres awarded, worth Rs 19 billion over the April to July 2023 period.FAStag toll collections witnessed a 14.4 per cent year-on-year increase from April 2023 to July 2023, accompanied by a 21.7 per cent year-on-year increase in collection value. This growth in toll collections is instrumental in expediting the monetisation of road assets by the Ministry and offers advantages to companies seeking to monetise their existing toll assets.Asset monetisation remains a focal point for NHAI, with a list of 46 projects spanning over 2,612 kilometers earmarked for monetisation in FY24. NHAI's target for FY24 is to raise between Rs 100 billion to Rs 150 billion through asset monetisation under the Toll-Operate-Transfer (ToT) strategy. In total, NHAI aims to generate up to Rs 450 billion through monetisation in FY24, utilising various funding models, including Infrastructure Investment Trusts and the securitisation of road assets constructed by NHAI's Special Purpose Vehicles (SPVs).Steel prices have seen a decrease of approximately 25 per cent, while aluminum prices have declined by about 33 per cent since April 22. In contrast, cement prices have raised by around 5 per cent from their lows in July 22, primarily due to input cost pressures. With a stable outlook for commodity prices, road contractors anticipate an improvement in profitability and margins in FY24.Despite a slower pace of project awarding until August 2023, there exists a robust pipeline of tenders. Entities with substantial order backlogs, strong financial positions, and diverse sector engagement are well-positioned to benefit from NHAI's proactive approach to project allocation in FY24. Motilal Oswal's top choice in this sector is KNR Constructions Ltd. If you want to learn more about Indian Roads, make sure you sign-up for the India Roads Conference at the India Construction Festival on October 12th in New Delhi Click HERE and reserve your seats! Or call Deepali on 82919 95574....

Infrastructure Urban

07 Jul 2026

IHC and Adani to Invest US$11.5 bn in Odisha Aluminium Project

Abu Dhabi's International Holding Company (IHC) will invest US$11.5 bn in an integrated aluminium project in the eastern Indian state of Odisha in a joint venture with the Adani Group, a state official said. The official said the announcement represented the country's largest foreign investment in mining and metallurgy. Officials said the venture would span both mining and metallurgical activities across several facilities in the state. The project has been described as integrated, encompassing upstream bauxite extraction and downstream smelting and metallurgy, and is intended to develop a com..

Infrastructure Transport

07 Jul 2026

Air India and SIAEC to Explore MRO Joint Venture in India

Air India and SIA Engineering Company (SIAEC) have signed a memorandum of understanding (MoU) to explore the formation of a maintenance, repair and overhaul joint venture in India. The MoU, signed on Friday, will examine collaboration to develop India as a global aviation MRO hub and to serve growing needs across the Indian and regional markets. SIA Engineering Company, part of the Singapore Airlines Group which holds a 25.1 per cent stake in Air India, will bring technical expertise alongside Air India's established airline operations network. The partnership builds on existing cooperation be..

Infrastructure Transport

07 Jul 2026

Assam and Centre Review Aviation Projects Push Silchar Airport Approval

Assam and the Centre on Thursday, July two reviewed a series of aviation infrastructure projects aimed at strengthening air connectivity across the state, with the proposed greenfield airport at Silchar emerging as a key priority. The review formed part of broader efforts to position Assam as a major aviation and logistics hub for the north east. Officials outlined timelines and preparatory work that they said would guide the next stages of project approvals. The Chief Minister met the Union Civil Aviation Minister at Rajiv Gandhi Bhavan in New Delhi and described the meeting as very productiv..