The National Highways Authority of India (NHAI) has launched a new asset monetisation cell to optimise the management and monetisation of its operational highway assets. Led by a finance department member, the cell will include experts in finance, technical operations, and transport economics. Its main tasks include market analysis and identifying high-revenue potential assets, focusing on 33 projects expected to generate over INR 850,000 crore in FY 2024-25. This initiative follows NHAI's successful monetisation of INR 40,314 crore in 2023-24 and aims to ensure effective reinvestment in infrastructure development while attracting investor confidence.
The National Highways Authority of India (NHAI) has established a new asset monetisation cell. This initiative aims to manage and optimise the monetisation of operational highway assets effectively. By focusing on its financial strategies, the NHAI hopes to not only improve the monetisation process but also ensure better reinvestment in future infrastructure projects.
The newly created cell will be led by a member from the finance department and will consist of both regular and contractual employees with expertise in various fields, including finance, technical operations, and transport economics. This diverse team is expected to provide valuable insights and recommendations on the best ways to monetize NHAI's assets. The tenure for the members will initially be set for two years, with the possibility of extension but not exceeding five years in total.
One of the primary responsibilities of this cell will be to conduct thorough market analysis and feasibility studies. By identifying assets with proven toll collection records, the cell aims to focus on projects that have strong revenue generation potential. This strategic approach is expected to help NHAI identify which assets are ripe for monetisation and to create a roadmap for effective implementation.
Moreover, the NHAI has taken proactive steps by publishing an indicative list of 33 assets slated for monetisation in the fiscal year 2024-25. These projects are projected to generate over INR 850,000 crore in funds. This comes on the heels of previous successful monetisation efforts where the NHAI was able to raise over INR 40,314 crore during 2023-24 from a total monetisation target of INR 297,000 crore. The focus will not only be on generating funds but also on ensuring sustainable infrastructure development across the country.
By engaging with various stakeholders, including potential investors, government agencies, and financial institutions, the asset monetisation cell aims to facilitate a smooth and transparent monetisation process. The NHAI believes that such collaborations will be crucial to creating confidence among investors, allowing them to plan their investments efficiently.
This initiative marks a pivotal moment for India's infrastructure sector, where the government is keen on maximising the potential of existing assets while ensuring the continued growth of its transportation network. The establishment of the asset monetisation cell signals NHAI's commitment to innovative financial solutions that can support national development goals and enhance the efficiency of road transport systems across the country.
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