The Ministry of Road Transport and Highways (MoRTH) intends to generate Rs 35,000 crore from asset monetisation this financial year — exceeding the previous target of Rs 32,855 crore, according to a senior government official.
Currently, MoRTH monetises its assets under three different modes, including —project-based financing, the toll-operate-transfer (TOT) model, and infrastructure investment trusts (InvIT).
These models offer a chance for all types of investors to invest in highway and associated infrastructure assets.
According to MoneyControl report, Rs 15,000 crore is scheduled to be raised in 2023-24 through project-based financing of high-speed corridors by securitising the future toll revenues without any guidance from the authority.
Further, Rs 10,000 crore is expected to be raised via InvIT and the ministry plans to collect Rs 10,000 crore using ToT in 2023-24.
The official stated that in the last four years, till February 28, 2023, MoRTH has already raised Rs 67,997 crore through various modes of asset monetisation.
Monetisation Achieved Under Different Models
As per the official, Rs 31,321 crore has been realised through project-based financing of Delhi-Mumbai Expressway till date.
Out of this, Rs 7,584 crore has been raised in FY 2022-23 till February 2023.
Further, under the ToT model, Rs 26,366 crore has been raised through monetisation of 1,614 km till date.
Under this model, public funded projects, operational for two years, are put up for bidding, wherein the right of collection and appropriation of fee is assigned for a predetermined concession period (30 years) to concessionaires (developers or investors) against the upfront payment of a lump sum amount to National Highways Authority of India (NHAI).
Out of the amount raised, Rs 3,144 crore has been raised in FY 2022-23 till February 2023.
While bids have been invited for two more ToT bundles viz bundle 11 and 12 for a total of Rs 7,000 crore, which are likely to be awarded in July 2023, reports The Economic Times.
Additionally, Rs 10,200 crore has been raised till date through InvIT listings of NHAI with length of 635 km in phase-1 and 2.
Infrastructure Investment Trust (InvIT) is an instrument on the pattern of mutual funds, designed to pool money from investors and invest in assets that will provide cash flows over a period of time.
Out of this, Rs 2,850 crore has been raised in FY 2022-23 till February, 2023.
Phase-3 InvIT is planned to be awarded in April 2023 for a total of Rs 10,000 crore.
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