The National Highways Authority of India (NHAI) is set to establish an asset register for highway segments that possess long-term monetisation potential. This initiative is designed to assist investors in strategizing, as the register will provide detailed information on traffic, revenue, and will categorize assets to ensure a balance between returns and risks.
The plan is aligned with the monetisation target of Rs 30,000 crore for the fiscal year 2025, utilizing both the toll-operate-transfer (TOT) and infrastructure investment trust (InvIT) methods. Currently, the authority releases an annual list of highways earmarked for monetisation through the TOT or InvIT approaches. The forthcoming register will supplement this yearly list and is expected to aid investors in developing their strategies, according to officials.
For this financial year, the monetisation list comprises 24 highway stretches, totalling 1,472 kilometres in length. The Budget for this year has set the monetisation target at Rs 30,000 crore, although this figure may be increased, as the latest asset monetisation strategy document outlines ambitious plans for asset sales. The asset register will encompass all necessary technical and financial information required to assess the monetisation potential of each asset.
Assets will be classified based on their traffic and revenue potential into categories such as highly attractive, moderately attractive, potentially attractive, and those with low revenue per kilometer. This classification will facilitate the creation of balanced asset bundles for monetisation through either TOT or InvIT.
Highway stretches that exhibit low revenue per kilometer will be excluded from these bundles. The assets included in the register must generate substantial toll revenue to maintain positive cash flows and deliver adequate returns to the concessionaire. Presently, only assets yielding more than Rs 0.8 crore per kilometer annually in toll revenue are under consideration for monetisation.
Only highway corridors that are devoid of encumbrances, disputes, arbitrations, or any other legal liabilities will be included in the list. As stated in the document, the NHAI is set to initiate a public InvIT and will provide three bundles for monetisation each quarter. This public InvIT, which will facilitate retail participation in the highway monetisation programme, will complement the private InvIT National Highway Infrastructure Trust (NHIT), through which four rounds of monetisation have already been accomplished.
