New Delhi: The National Highways Authority of India (NHAI) has raised a total amount of Rs 1,42,758 crore through different modes of asset monetisation up to FY 2024-25, and the target for the current financial year has been fixed at Rs 30,000 crore, Minister of Road Transport and Highways Nitin Gadkari informed the Parliament Thursday.
Gadkari said that the government monetises highway assets through three modes – Toll Operate & Transfer (ToT), Infrastructure Investment Trust (InvIT), and Securitisation (Project-based Financing through SPV).
Of the total amount that has been raised till 2024-25, TOT accounts for Rs 48,995 crore, InvIT has contributed Rs 43,638 crore, and securitisation accounts for Rs 50,125 crore, he said in a written reply to a question in the Lok Sabha.
The minister further stated that under ToT Mode, open market bids are invited. Road Stretches are awarded for a concession period (15-30 years) to the highest bidder, whose offer must be above the reserve price.
The NHAI has formed the National Highways Infra Trust (NHIT) and offers stretches to it for a 15-30 year concession period to obtain its highest valuation. The NHIT’s offer price is compared with the reserve price, and it, in turn, raises the money through bonds and discovers the best price through the sale of units on the SEBI platform.
Under the Securitisation Mode, the NHAI has been authorised to raise long-term finance from banks, and by issuing bonds by securitising user fee receipts from toll plazas on the Delhi-Mumbai Expressway as an alternate mode of asset monetisation, through a Special Purpose Vehicle.
The funds raised through the TOT mode are transferred into the Consolidated Fund of India (CFI), which is received through ploughback under budgetary support.
From financial year 2024-25 onwards, the funds received from the InvIT mode are also transferred into the CFI, which is received through ploughback under budgetary support.
The minister also said that the Delhi-Mumbai Expressway project is under securitisation mode through SPV. The funds are utilised for the project expenses of the Delhi-Mumbai Expressway.
The projected financial contribution of asset monetisation for the current fiscal year is Rs. 30,000 crore. The Government has also identified the NH stretches to be monetised through TOT/InvIT mode for the current Financial Year and onwards, he added.
The government takes various steps to ensure transparency, investor confidence and market development for the successful implementation of this asset monetisation strategy. The selection of public-funded National Highway (NH) projects for monetisation is finalised with the approval of the Competent Authority on a case-by-case basis.
Transparency is ensured by way of publishing macroeconomic assumptions and a proposed list of assets to be monetised on the website, while traffic due diligence and technical due diligence are being done by an Empanelled Traffic Surveyor and an Empanelled Technical Consultant.
The initial capex suggested by the Technical Consultant and the traffic data suggested by the Traffic Surveyor are then deliberated in the Project Appraisal & Technical Scrutiny Committee (PATSC) and then recommended to the Executive Committee for approval. The recommendation of PATSC is then finally discussed and approved in the Executive Committee, Gadkari said.
The minister further pointed out that all these steps are open to audit by the Comptroller and Auditor General of India (CAG).
IANS
