The National Highways Authority of India (NHAI) will raise Rs 15,000 crore via Investment Trusts (InvITs) in FY’24, a senior official said.
“We hope to finalise the two rounds of InvITs before December this year and we plan to raise Rs 15,000 crores from those two rounds,” NHAI Chairman Santosh Kumar Yadav told reporters here.
InvIT is part of the National Monetization Plan to monetize its road projects, with an initial portfolio of five operating toll roads with an aggregate length of 390 kilometers. These roads are located across the states of Gujarat, Karnataka, Rajasthan and Telangana. NHAI has granted new concessions of 15-30 years for these roads.
Under this monetization exercise, assets are placed in an InvIT where investors put in money and income generated from such assets is paid as dividend.
In December 2019, the Union Cabinet had given its approval to the NHAI to set up an InvIT and monetize national highway projects.
The move was aimed at enabling NHAI to monetize completed national highways that have a toll collection track record of at least one year and it reserves the right to levy toll on the identified highway.
As far as the monetization plan of the Ministry of Road Transport and Highways is concerned, it will be via Toll-Operate-Transfer (TOT) contracts and Infrastructure Investment Trusts (InvITs) of by the National Highways Authority of India (NHAI).
Under this monetization exercise, assets are placed in an InvIT where investors put in money and income generated from such assets is paid as dividend.
The overall monetization target for the Ministry of Road Transport and Highways is Rs 45,000 crore, of which Rs 30,000 crore would be raised by TOT or Toll-Operate-Transfer model and remaining Rs 15,000 crore via InvITs.
