Road to Asset monetisation

27 Sep 2023 CW Team

Not surprisingly, the Government is now intently focusing on mopping up funds from the private sector to further expand the existing highway network and service the highway authority’s debt. A proposed National Monetisation Plan (NMP) detailed in 2021 estimated raising Rs.6 trillion through the core assets of the Central Government between 2021 and 2026. Monetising 26,700 km of four-lane and above national highways was expected to contribute 27 per cent (`1.6 trillion) of this sum.

Crisil has estimated that NHAI’s need for funds will double to Rs.10 trillion over the next five-year period vis-à-vis the previous five years, and that 15 per cent of this sum could be generated by the monetisation of assets. It has also estimated that if this funding comes through, NHAI could construct 25,000 km of national highways between 2022 and 2026, compared to 17,228 km between 2017 and 2021.

Infra trusts to the rescue

To support the Government’s NMP, in October 2021, NHAI created the National Highways Infra Trust (NHAI InvIT), an infrastructure investment trust.

“Asset monetisation through the NHAI InvIT will play a big role in the repayment of principal amounts so that NHAI achieves its plan to significantly reduce its current outstanding debt by 2029-30,” notes Puneet Narang, Partner, Major Projects, Business Consulting, KPMG in India. “Essentially, the NMP aims at tapping into institutional and private-sector investment for the creation of new infrastructure.”

To read the full story, CLICK HERE.

In the last fiscal, India’s premier road construction authority, the National Highways Authority of India (NHAI), kept up the rapid expansion momentum of recent years, constructing over 30 km of roads daily while new highway awards topped 12,375 km. Such diligent expansion of the country’s highway network in recent years has left the authority with a massive Rs.3.42 trillion debt (at the end of March 2023).Not surprisingly, the Government is now intently focusing on mopping up funds from the private sector to further expand the existing highway network and service the highway authority’s debt. A proposed National Monetisation Plan (NMP) detailed in 2021 estimated raising Rs.6 trillion through the core assets of the Central Government between 2021 and 2026. Monetising 26,700 km of four-lane and above national highways was expected to contribute 27 per cent (`1.6 trillion) of this sum.Crisil has estimated that NHAI’s need for funds will double to Rs.10 trillion over the next five-year period vis-à-vis the previous five years, and that 15 per cent of this sum could be generated by the monetisation of assets. It has also estimated that if this funding comes through, NHAI could construct 25,000 km of national highways between 2022 and 2026, compared to 17,228 km between 2017 and 2021.Infra trusts to the rescueTo support the Government’s NMP, in October 2021, NHAI created the National Highways Infra Trust (NHAI InvIT), an infrastructure investment trust. “Asset monetisation through the NHAI InvIT will play a big role in the repayment of principal amounts so that NHAI achieves its plan to significantly reduce its current outstanding debt by 2029-30,” notes Puneet Narang, Partner, Major Projects, Business Consulting, KPMG in India. “Essentially, the NMP aims at tapping into institutional and private-sector investment for the creation of new infrastructure.”To read the full story, CLICK HERE.

Infrastructure Urban

03 Apr 2026

Centre Disburses Over Rs 24,610 mn in XV Finance Commission Grants

The Union Government has released XV Finance Commission tied grants during the financial year 2025–26 to rural local bodies in Chhattisgarh, Gujarat, Madhya Pradesh, Punjab and Sikkim and has released withheld portions of tied and untied grants to Himachal Pradesh, Odisha and Tripura. The total disbursal exceeded Rs 24,610 mn, with figures expressed in million (mn) thereafter. The releases cover allocations pertaining to different financial years and aim to strengthen rural local governance. State-wise disbursements included Rs 3,324.6 mn for Punjab, Rs 9,432.7 mn for Madhya Pradesh, Rs 3,47..

Infrastructure Urban

03 Apr 2026

Centre Releases Over Rs 15 bn as XV FC Grants to Rural Bodies

The Union Government has released over Rs 15 bn in grants recommended by the Fifteenth Finance Commission (XV FC) to strengthen Panchayati Raj Institutions (PRIs) and Rural Local Bodies (RLBs) in six states. The funds comprise tied and untied grants disbursed in FY 2025–26. Telangana received Rs 2.48 bn as the first instalment of untied grants for FY 2025–26, benefitting 12600 Gram Panchayats (GPs). Uttarakhand received Rs 913.1 mn as the second instalment and an additional Rs 18.4 mn of a withheld first instalment was released to a further 216 GPs. Mizoram is included among beneficiary st..

Infrastructure Energy

03 Apr 2026

Government Assures Fuel Supplies And Seafarer Safety Amid West Asia Developments

The Government of India has stepped up coordinated measures to maintain stability in critical sectors as developments in West Asia continue to unfold. It has prioritised uninterrupted energy supplies, safeguarded maritime operations and extended consular assistance to nationals. Central authorities are working with State and Union territory administrations to ensure timely information dissemination and operational continuity. Refineries are reported to be operating at high capacity with adequate inventories of petrol and diesel, and domestic LPG production has been increased to support consump..