NHAI to raise Rs 15,000 crore via InvITs in FY2024: Chairman

The National Highways Authority of India (NHAI) will raise Rs 15,000 crore through Investment Trusts (InvITs) in FY24, a senior official said.

“We hope to complete the two rounds of InvIT before December this year and plan to raise Rs. 15,000 crores from these two rounds,” NHAI Chairman Santosh Kumar Yadav told reporters here.

InvIT is part of the National Monetization Plan to monetize its road projects with an initial portfolio of five operating toll roads totaling 390 kilometers. These roads run in the states of Gujarat, Karnataka, Rajasthan and Telangana. NHAI has awarded new concessions for these roads with terms ranging from 15 to 30 years.

As part of this monetization effort, assets are placed in an InvIT where investors deposit money and the income generated from those assets is paid out as dividends.

In December 2019, the Union Cabinet gave NHAI approval to set up an InvIT and monetize national highway projects.

The move was aimed at enabling NHAI to monetize completed national highways that have at least a year’s track record of toll collection and will reserve the right to collect a toll on the identified highway.

The Ministry of Roads and Highways monetization plan will be delivered through Toll Operate Transfer Contracts (TOT) and Infrastructure Investment Trusts (InvITs) of the National Highways Authority of India (NHAI).

As part of this monetization effort, assets are placed in an InvIT where investors deposit money and the income generated from those assets is paid out as dividends.

The overall monetization target for the Department of Road Transport and Highways is Rs. 45,000 crore, of which Rs. 30,000 crore is to be raised through TOT or the Toll Operate Transfer scheme and the remaining Rs. 15,000 crore through InvITs.

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