NHAI`s targeted asset monetisation of road assets can fetch up to Rs 60,000 crore for government in FY25: ICRA
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Rating agency ICRA has said that state-owned National Highways Authority of India’s (NHAI) targeted asset monetisation of road assets could fetch the government up to Rs 60,000 crore in the current fiscal year (FY25). In April 2024, the NHAI had released an indicative list of 33 road assets it plans to monetise in FY2025, through a mix of toll-operate-transfer (TOT) and sale to the NHAI's Infrastructure Investment Trust (InvIT).
The report said these assets are spread across 12 states, cumulatively spanning nearly 2,750 km and with an annual toll collection of Rs 4,931 crore. ICRA estimates a monetisation potential of Rs 53,000 crore to Rs 60,000 crore from the sale of 33 road assets through TOT/ InvIT mode. It noted that NHAI intends to club the 33 identified assets into large (more than Rs 6,000 crore), medium (about Rs 3,000 crore - Rs 4,000 crore) and smaller bundles (Rs 1,000-3,000 crore), for different types of investors.
It further stated that under the government's National Monetisation Pipeline (NMP), road sector monetisation was expected to account for Rs 1.6 lakh crore, viz. 27 per cent of total monetisation during FY2022-FY2025. In case the identified 33 assets garner the estimated Rs 53,000 crore to Rs 60,000 crore of monetisation in FY2025, the achievement against the NMP target could end-up between 65 per cent to 71 per cent.
