The National Highways Authority of India (NHAI) has firmed up its asset monetisation strategy for the next three years, in alignment with its mop-up target of Rs 4.42 lakh crore for the next five years.
“We will achieve the government’s asset monetisation plan for the next five years,” NHAI’s Member (Finance) N R V V M K Rajendra Kumar said at an event to mark the listing of the units of Raajmarg Infra Investment Trust (RIIT) after its initial public offer.
RIIT is a public InvIT sponsored by NHAI. Kumar is its Managing Director.
The government’s second National Monetisation Pipeline has an overall target of Rs 16.32 lakh crore by 2029-30 of which the share of the highways sector is 26%. The funding by the private sector in Public Private Partnership (PPP) projects has been made part of the target.
RIIT makes a strong debut on the exchanges
The units of RIIT made a strong debut on the exchanges, closing 6% higher than the issue price of Rs 100.
“This will strengthen our vision to provide opportunities for all road users to become road owners. This milestone demonstrates our nation’s ability to mobilise its own resources to build world-class National Highways and infrastructure,” Minister of Road Transport and Highways Nitin Gadkari said.
RIIT will get the rights to collect toll on the five highways that it would acquire in the first round for 15 years. Gadkari said that the next target is to monetise 1500 km of highways over the next three years.
The minister said that the ministry has assets worth Rs 5 lakh crore that can be monetised at a short notice but the spending capacity is much lower due to slower pace of awarding. At present there are only Rs 3.5 lakh crore of projects available.
