Nhai sets out his strategy for monetizing assets for the first time | Mint

New Delhi: The National Highway Authority of India set out its strategy for the first time to earn assets to unlock value and increase public-private participation for the development of infrastructure in India. The state-owned agency’s ‘BAT Monetization Strategy for the Road Sector’ provides a blueprint to mobilize capital through a toll-toll transfer (to) model, infrastructure investment trusts (invitations) and securitization. Three-Pilaar approach The strategy is anchored in three nuclear pillars: value absorption of government road assets; transparency of processes and distribution of investor-relevant information; and market development through the deepening of the investor base as well as the promotion of stakeholders’ involvement. As one of the early relatives in the direction of alternative financing mechanisms, the Nhai’s strategy includes the government of India’s asset-monetization plan for 2025-30. Instruments such as, invitations and securitization have helped the state -owned agency to raise more than 6,100 km from the national freeways under the national monetization pipeline more than 6,100 km from the national highways. “The unique approach that Nhai has used to ensure asset monetization not only ensures financial sustainability, but also offers opportunities for the private sector, utilizes advanced technologies, increases the quality and the long life of our road assets,” said Nhai chairman Santosh Kumar Yadav. “The successful implementation of this strategy will provide Nhai with a steady stream of financing, reducing our reliance on traditional financing sources.” NRVVMK Rajendra Kumar, member financing, Nhai said: “This document publishes a strategic framework to maximize the benefits of asset -monetization. This highlights the need for a structured approach to identify and appreciate assets, to ensure transparency and to promote investor confidence.” According to the rating agency Crisil Ltd, Nhai will reach its previous high of 6,000 km per year of awards and execution, a significant increase in private capital through acceleration in monetization of assets essential. “We expect the share of monetization in Nhai’s sources of funds to grow in these fiscal to 18%, and next compared to 14% in the previous two fiscal,” Crisil said in his report on infrastructure. “What gives confidence here is a monetary asset base worth £ 3.5-4 Lakh Crore.”