GS 3: EconomyPrelims

Highway assets identified by NHAI for monetisation in FY27, Pg10

NHAI plans to monetize 1,692.5 km of National Highway assets through TOT and InvIT modes in FY27.

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Key Highlights:

  • NHAI has identified 17 National Highway assets for monetisation in FY27.
  • The total combined length of these highways is 1,692.5 km.
  • Monetisation will occur through Toll-Operate-Transfer (TOT) and Infrastructure Investment Trust (InvIT) modes.

Detailed Insights:

  • Monetisation of highway assets helps NHAI generate revenue for further infrastructure development.
  • TOT involves leasing out completed highway projects for a fixed period to private players who collect toll revenue.
  • InvITs are collective investment schemes similar to mutual funds, allowing investors to invest in infrastructure projects.
  • The identified assets are expected to attract significant investment, boosting the highway sector.

Key Concepts Involved:

  • Toll-Operate-Transfer (TOT): A model where completed highway projects are leased to private entities for toll collection.
  • Infrastructure Investment Trust (InvIT): A collective investment scheme that enables investment in infrastructure projects.
  • Monetisation: The process of converting assets into cash or revenue-generating streams.
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