MoRTH Sets Rs 60,000 Cr Asset Monetisation Goal For FY25
The Ministry of Road Transport and Highways (MoRTH) is poised to embark on an ambitious asset monetisation drive, aiming to raise a staggering Rs 60,000 crore in the current fiscal year, according to reports.
A significant portion of this target is expected to be derived from flagship toll-operate-transfer (TOT) highways, with approximately one-third of the funds anticipated to be generated through the NHAI InvIT (Infrastructure Investment Trust) and private InvITs. This marks a significant expansion in the scope of monetization efforts, with private InvITs set to be directly offered road projects for the first time.
The heightened monetisation drive in FY25 seeks to build upon the momentum established in the previous fiscal year, during which a record ₹38,334 crore was mobilised through a combination of TOT, InvIT, and project-based financing—an impressive 64 per cent increase over the figures recorded in FY23.
Under the National Monetization Pipeline, road and highways have been allocated the highest target, with core assets worth Rs 1.6 trillion slated for monetisation by FY25. With assets worth Rs 1.08 trillion already monetised since FY19, MoRTH is now looking to add over Rs 60,000 crore in the current fiscal to achieve its ambitious target.
According to a former official of the National Highway Authority of India (NHAI), the achievement of the Rs 1.6 trillion monetisation target should be assessed in the context of the national monetization pipeline's inception in FY22. Since then, MoRTH has successfully monetized assets worth Rs 84,000 crore, indicating the need for continued efforts to reach the targeted milestone.
MoRTH officials remain optimistic about achieving the monetization goal, citing the NHAI's extensive portfolio of completed projects available for private sector operation and maintenance. Additionally, plans are underway to revive the 'Build, Operate, Transfer (BOT)' model for highway development, with tenders for 53 projects covering 5,200 km expected to be issued soon.
A key strategy to attract global investors involves auctioning completed road and highway bundles directly to private sector InvITs. This approach marks a departure from previous practices, wherein such projects were exclusively offered to state-owned entities like NHAI's InvIT.
The NHAI is also exploring avenues to mobilise funds through the securitisation of future toll revenue from select projects as part of the monetization exercise.
With private sector interest in road and highway projects experiencing a resurgence, private investments in the sector have reached unprecedented levels. Out of the total capital investment of Rs 3.01 trillion in FY24, the private sector contributed Rs 34,805 crore, signalling renewed confidence in the sector's growth prospects.
As MoRTH sets its sights on achieving its ambitious monetisation target, stakeholders anticipate a flurry of activity in India's infrastructure landscape, with significant implications for the country's economic growth and development agenda.
