NHAI Hits Rs 1 Lakh Crore Asset Monetisation, Raises Rs 15,624 Crore in Third InvIT Round

The National Highways Authority of India (NHAI) has achieved a significant milestone by raising the highest-ever concession value of Rs 15,624.90 crore through the third round of the infrastructure investment trust (InvITs) route.

The federal road agency has monetised 10 stretches with an aggregate length of about 890 km under InvIT Round-3. This is spread across Assam, Karnataka, Madhya Pradesh, Uttar Pradesh and West Bengal.

Among the sections monetised in 'InvIT Round-3' are Chichira-Kharagpur, Orai-Bara, Rewa-Katni-Jabalpur-Lakhnadon, Kachugaon to Rakhaldubi Bus Junction, Rakhaldubi Bus Junction to Kaljhar, Kaljhar to Patacharkuchi, Lakhnadon to Mahagaon, Mahagaon to Khawasa, Hubli to Haveri, Davangere to Haveri, and Davangere to Chitradurga.

The monetised value is expected to be realised in March 2024, the Ministry of Road Transport and Highways said.

InvIT is an instrument on the pattern of mutual funds, designed to pool money from investors and invest in assets that will provide cash flows over some time. The NHAI, in November 2021, launched National Highways Infra Trust (NHIT), the infrastructure investment trust, to support the government’s National Monetisation Pipeline (NMP).

The NHAI has so far raised Rs 10,200 crore under two rounds of InvIT with aggregate length of about 635 km.

Asset Monetisation

NHAI has adopted three modes for asset monetisation, which includes InvITs, toll operate transfer (TOT), and project based securitisation.

The NHAI has been authorised to monetise public funded national highway projects which are operational and are collecting toll for at least one year after the commercial operation date (COD) through the TOT basis.

Under this model, private developers are given tolling rights on operational road projects in return for an upfront fee to the government which can be used for development of national highways in future.

The NHAI’s total realisation under the asset monetisation programme has crossed Rs 1 lakh crore which includes Rs 42,334 crore through TOT, Rs 26,125 crore through InvIT and Rs 42,000 crore through securitisation.