In the previous financial year, NHAI raised Rs 8,000 crore in cash for five projects of 400 km through the first phase of Invit. Invitations are a vehicle for collective investment like a mutual fund, enabling direct financial investment from individual and institutional investors in infrastructure projects that earn a small portion of their income as a return.
“We are optimistic about the Rs 20,000 crore asset monetization plan for the current financial year as there is still hunger among investors,” NHAI chairperson Alka Upadhyay told PTI in an interview.
Asked about the cancellation of the sixth and eighth bundles of its asset monetization scheme through the Toll-Operate-Transfer (TOT) system, he said, “We wanted to give the highest return but now we will re-adjust and re-package it because it is not one. The main problem is the lack of demand for such resources. ”
The ToT process started a few years ago and NHAI has so far successfully monetized 21 stretches with a total length of 1,540 km at a cost of Rs 23,000 crore from both domestic and international investors.
Under the TOT, public-funded highway stretches are leased in return for advance payment. The operator recovers the investment by collecting the user’s fees on the stretches following the rate set by NHAI, but the operator has to manage and maintain the extended works during the full discount period.
Upadhyay said the Bharatmala project is India’s largest highway infrastructure program to date with an investment of Rs 5.35 lakh crore in 34,800 km of national highway corridors.
“NHAI will be able to deliver contracts for 30,000-31,000 kilometers by 2025,” he said.
The proposed 22 Greenfield Expressways and access-controlled corridors are 8,300 km long and are part of a Rs 3.6 trillion capital investment in India, which is expected to be a lifeline for the country’s next growth and reduce emissions and generate emissions. Annual energy savings of Rs 10,000 crore, officials said.
Upadhyay said he would focus on road maintenance and accident-free roads.
“NHAI is not only building world-class roads, it is also taking a keen interest in building accident-free national highways. This is our main focus and we are conducting a third party road safety audit.