NHAI to raise Rs 6,000Cr in first deal in FY24

In the current fiscal year, the National Highways Authority of India (NHAI) is set to generate over Rs 6000 crore through its debut asset monetization effort. This will come to fruition as NHAI wraps up dealings for two highway bundles in the coming two to three weeks.

The financial bids for both highway bundles, termed Bundle 11 and Bundle 12, have been opened and are presently under assessment. It is expected that it will take another two to three weeks to award the highway contracts to the winning bidders.

In the ongoing fiscal year, NHAI aims to raise revenue between Rs 10,000 crore and Rs 15,000 crore from asset monetization using the ToT model, along with other strategies such as Infrastructure Investment Trusts and road asset securitization via NHAI's Special Purpose Vehicles. Overall, NHAI's target for monetization in the fiscal year 2023-24 is up to Rs 45,000 crore.

Substantial investor interest has been noted for the newly introduced bundles. Furthermore, NHAI has outlined a roster of 46 projects, spanning a total of 2612 km, set for monetization within this fiscal year. The process of monetization through the ToT mechanism typically takes about six months to conclude.

Content source: Media reports