Asset monetisation: NHAI sets 1,750-km target for 2022-23, may raise Rs 20,000 crore

The National Highways Authority of India (NHAI) has decided to monetise highway stretches with combined length of 1,750 km in 2022-23, a move which help it raise around Rs 20,000 crore. It has prepared an “indicative” list of road assets to be monetised in the current fiscal which includes 14 stretches with length between 6.49 km and 280 km in different parts of the country.

Asset monetisation is central to NHAI’s plan to mitigate its debt burden, which stood at a worrisome Rs 3.5 trillion at the end of last financial year. Monestisation of operational assets will be through the toll-operate-transfer (TOT), infrastructure investment trusts (InvIT) and toll securitisation modes. Recently, the NHAI cancelled the bidding processes for two TOT bundles — sixth and eighth — as the highest bids did not match up to its expectations.