Paved with cash: NHAI might monetise Rs 40k cr assets in FY24

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The highways are paved with gold. The National Highways Authority of India (NHAI) has projected an asset monetisation of nearly Rs 40,000 crore in FY24, in the highest collection ever, The Economic Times has said in a report. In the process, the highway custodian could garner more than Rs 1 lakh crore since 2018-19.

The amount includes collections through toll-operate-transfer (TOT), toll securitisation and infrastructure investment trusts (InvITs).

“We have undertaken asset monetisation in a big way. This has been possible because of the attractiveness of the road projects, higher returns to investors and operational experience of players prompting them to go for greater investments year-after-year,” said a senior official on conditions of anonymity.

According to NHAI data, the receipts in the past few years inclusive of FY24 is as follows: Rs 9,681.50 crore (FY19), Rs 14,742 crore (FY21), Rs 22,367.40 crore (FY22), Rs 23,650.77 crore (FY23) and Rs 39,968 crore (FY24). The collection in the above years amount to Rs 1,10,409.67 crore.

This financial year, the ministry of road transport and highways awarded TOT bundle 11, 12, 13 and 14 which cumulatively amount to a collection of Rs 15,968 crore. Further, the ministry plans to mop up Rs 15,000 crore through InvITs and Rs 9,000 crore through toll securitisation.

The report states that the total proceeds from asset monetisation to would rise to Rs 1,10,409.67 crore by March 31, 2024. On 18 January, the Union finance ministry praised the revenue collection by the ministry on social media. It stated that the success of the road transport and highways ministry in this regard since FY22 would complement public resources.

The finance ministry also said that the road transport and highways ministry mopped up Rs 73,126 crore till November 2023 through new ways of financing such as TOT, InvIT and even project-based financing.

The receipts include Rs 26,365 crore earned through monetisation of 1,615 km of roll with the help of toll-operate-transfer model, Rs 10,200 crore by monetising 635 km though InVIT and Rs 36,561 crore with the help of project-based financing for the Delhi-Mumbai Expressway.

On another front, NHAI is involved in almost 150 arbitration cases. The cumulative claims add up to Rs 1,09,000 crore in build-operate-transfer (toll and annuity) projects. Of these huge number, as many as 95 arbitral awards have been announced and these add up to claims of Rs 41,100 crore. Right now, 62 cases are being heard and they involve claims of Rs 83,800 crore.