NHAI’s First Asset Monetisation Deal This Fiscal Set To Secure Rs 6,000 Crore Under ToT Model

0

The two road assets are Bundle 11 with the transfer of the 87 km long Allahabad bypass, while Bundle 12 involves the transfer of a 361 km highway stretch from Lalitpur in Uttar Pradesh to Lakhnadon in Madhya Pradesh.

These bundles are being monetised through the Toll Operate Transfer (ToT) model.

The authority intends to generate Rs 44,000 crore from asset monetisation through the ToT model, project-based financing, and infrastructure investment trusts.

The National Highways Authority of India (NHAI) is set to generate over Rs 6,000 crore in its first asset monetisation deal this fiscal year.

The financial bids for Bundle 11 and Bundle 12 have been opened and are currently being evaluated. The successful bidders will be awarded the highways in the next two to three weeks, reports Financial Express.

These bundles are being monetised through the toll operate transfer (ToT) model — where an outside investor pays an upfront amount to take over the right to collect toll on a publicly funded asset. This right is valid for 30 years, after which the asset will revert back to NHAI, the owner.

Bundle 11 includes the transfer of the 87 km long Allahabad bypass, while Bundle 12 involves the transfer of a 361 km highway stretch from Lalitpur in Uttar Pradesh to Lakhnadon in Madhya Pradesh.

Bundle 12 will be the longest single asset ever offered by the NHAI and also with a 20-year concession period, making it attractive for the investors.

According to an official, Bundle 11 has received the highest bid of Rs 1,850 crore, while Bundle 12 has received a bid of Rs 4,181 crore.

MoRTH monetises its assets under three different modes, including — the toll-operate-transfer (TOT) model, project-based financing, and infrastructure investment trusts (InvIT).

These models offer a chance for all types of investors to invest in highway and associated infrastructure assets.

The NHAI aims to raise Rs 10,000 crore to Rs 15,000 crore through asset monetisation via the transfer of ToT in this fiscal year.

They also plan to raise funds through InvITs and securitisation of road assets built by the NHAI’s special purpose vehicle.

Further, in June, the NHAI announced the invitation for bids for two additional bundles of highways, Bundle 13 and Bundle 14, through the transfer of ToT route.

Bundle 13 consists of the Kota Bypass and cable stay bridge on NH 76 in Rajasthan, as well as the Gwalior Jhansi section and a section of NH-75 (New NH-44) in Madhya Pradesh and Uttar Pradesh.

The total length of highways included in this bundle is 110 km.

Bundle 14 includes the highly profitable Delhi-Meerut Expressway spanning 60 km, the Delhi-Hapur section covering 50 km, and a highway stretch in Odisha on Binjabahal Teleibani section.

NHAI plans to offer two new bundles for bidding every quarter. However, the process of monetisation through ToT is time-consuming and typically takes around six months to complete.

This financial year, the NHAI has identified 46 projects totalling 2,612 km for monetisation. The authority intends to generate Rs 44,000 crore from asset monetisation — planned to be met through the accruals from the ToT model, two rounds of infrastructure investment trust, and toll securitisation.  

This will be exceeding the previous target of Rs 32,855 crore, according to a senior government official.