NHAI raises record monetisation at ₹15,625 cr via InvIT

National Highways Authority of India (NHAI) has raised the highest ever monetisation value of ₹15,624.90 crore through 'InvIT Round-3'. Under the round, ten national highways stretches spanning 890 km in the states of Assam, Karnataka, Madhya Pradesh, Uttar Pradesh and West Bengal have been monetised. The authority has monetised assets worth over ₹1 lakh crore till date.

"The Letter of Acceptance (LOA) was issued within two hours of the opening of the bid. The monetised value is expected to be realised in March 2024. Earlier, two rounds of InvIT with aggregate length of about 635 km worth ₹10,200 crore were monetised. With this, NHAI's total asset monetization program has crossed ₹1 lakh crore (₹42,334 crore through toll operate transfer (TOT), ₹26,125 crore through InvIT and ₹42,000 crore through securitization)," NHAI says in a release.

NHAI has adopted three modes for assets monetising which includes Infrastructure Investment Trust (InvITs), toll operate transfer (TOT), and project-based securitisation, the authority says.

"During FY 2024, NHAI has already awarded and executed concession Agreements for four TOT bundles, for a total value of ₹15,968 crore, which is higher than its monetisation target of ₹10,000 crore for the current fiscal year. The success rate in TOT mode during FY24 was 100% and LoA were issued within a day of the financial bid opening to the successful bidders. At present, TOT bundles 15 and 16 are in the bidding stage and are expected to be issued by the end of FY24," the authority adds.

"Further, NHAI has also monetised through Project based Securitisation (Delhi-Mumbai Expressway) amounting to Rs 4,600 Crore in FY24. Additionally, Rs 9,000 crore has been planned to be monetised through this mode in this fiscal year," it says.

With the asset monetisation program, NHAI has been able to mobilise budgetary resources to meet its capital expenditure and debt servicing requirements. It may be noted that the authority plans to pay back about half of its outstanding debt worth ₹3,42,801 crore (as on March, 2023) in the next seven years. As per the debt reduction plan of the authority, ₹1,88,717.42 crore will be redeemed by 2030, while the entire amount will be redeemed till 2050.

The monetised sections in ‘InvIT Round-3’ include Chichira-Kharagpur,Orai-Bara, Rewa-Katni-Jabalpur-Lakhnadon, Kachugaon to Rakhaldubi Bus Junction and Rakhaldubi Bus Junction to Kaljhar, Kaljhar to Patacharkuchi, Lakhnadon to Mahagaon, Mahagaon to Khawasa, Hubli to Haveri, Davangere to Haveri and Davangere to Chitradurga.