In a strategic move to bolster infrastructure funding, the Union Ministry of Road Transport and Highways (MoRTH) sets its sights on an unprecedented ₹60,000 crore monetization goal for the fiscal year 2025.
Official statements indicate a multifaceted approach, with flagship Toll-Operate-Transfer (TOT) highways and National Highways Authority of India Infrastructure Investment Trusts (NHAI InvITs) leading the charge. Significantly, this ambitious target builds upon the momentum of the previous fiscal year, which witnessed a remarkable mobilisation of ₹38,334 crore. Such figures reflect a staggering 64% surge from the FY23 statistics, underlining the government’s commitment to infrastructure development. The cornerstone of this initiative lies in the National Monetization Pipeline, earmarking road and highways with the highest target of ₹1.6 trillion monetization by FY25. MoRTH’s track record, having already monetized assets worth ₹1.08 trillion since FY19, augurs well for achieving this milestone.
Crucially, the NHAI plans to revive the ‘Build, Operate, Transfer (BOT)’ model, inviting tenders for 53 projects spanning 5,200 kilometres valued at ₹2 trillion. This strategic shift aims to attract private sector investment, injecting vitality into the infrastructure landscape. Furthermore, the government plans to court global investors by auctioning completed road and highway bundles directly to private sector InvITs, a first-of-its-kind endeavour. This innovative approach seeks to leverage global capital markets, fostering broader participation in India’s infrastructure endeavours.
The NHAI’s monetization strategy encompasses various avenues, including the securitisation of future toll revenues and project-based financing. Notably, private sector interest in road and highway projects has witnessed a resurgence, with FY24 recording a historic high of ₹34,805 crore in private capital investment out of a total of ₹3.01 trillion. As the MoRTH embarks on this ambitious journey, bolstered by renewed private sector enthusiasm and innovative financing mechanisms, the stage is set for transformative developments in India’s infrastructure landscape. With eyes firmly set on the ₹60,000 crore target, stakeholders eagerly anticipate the realisation of this vision, heralding a new era of infrastructure development in the nation.
