Asset monetisation under TOT expected to be Rs 42,334 cr in FY24: Govt

Asset monetization: The total asset monetization under toll-operate and transfer (TOT) this model is expected to be Rs 42,334 crore by the end of FY 2023-24, the Ministry of Road, Transport and Highway said.  NHAI has successfully completed 6 rounds of the Road Asset (bundle of roads) of monetization through TOT mode and raised Rs 26,366 crores since 2018. 

Under TOT Model, the right of collection of user fee (toll) in respect of selected operational highways constructed through public funding are assigned through a concession agreement as a result of bidding. For a specified period of 15-30 years to the Concessionaire against upfront payment of a lump-sum amount quoted to the Government/NHAI. During the concession period, the responsibility for operations and maintenance of the road assets rests with the Concessionaire. Similarly, Rs15,000 crore is expected to be realized in FY24 through another round.

Similarly, under InVIT Model, NHAI has set up an InvIT under the SEBI InvIT Regulations, 2014, in which NHAI is having 16 per cent stake apart from main investors. InvIT is a pooled investment vehicle that issues units to investors, while having three entities for management of the Trust – Trustee, Investment Manager and Project Manager. 

“The three entities have defined roles and responsibilities under the SEBI Regulations. Two rounds (635 km) were taken up and finalised. Under this model, concession fee of Rs.10,200 crores has been realized so far,” the government release said. 

The release also highlighted that about Rs 37,000 crore has already been raised through SPV model (DME- Delhi Mumbai Expressway) by NHAI so far. “Another Rs 6,000 crore is expected to be raised under this model in FY 2023-24,” the release added further.