NHAI eyes road asset monetization in a big way

In order to generate adequate funds for its on-going and upcoming road projects, NHAI is eyeing road asset monetization in a big way. The government is proposing to take up projects based on financial viability under the ambitious Bharatmala program entailing construction of 60,000 km of national highways across the country. Projects with high traffic density and their ability to be monetized almost immediately after completion, and yield revenue thereby, will be taken up first. The idea is to recycle assets faster, said an industry insider. Projects are normally monetized as soon as they are ready and the funds can be put into building more roads. The government will take up a combination of toll securitization and toll-operate-transfer (TOT) to make debt sustainable. NHAI has been exploring different ways of financing to meet its hefty road construction targets amid limited budgetary resources.