Buoyed by response from international institutional investors, the National Highways Authority of India (NHAI) plans to come out with bids for monetisation of 10 out of 75 public-funded national highway projects in the first phase.
The move follows the CentreÂ’s decision in August last year authorising NHAI to monetise public-funded highway projects in the country.
Ten such projects out of a basket of 75 have been identified for monetisation and several investors, including Canadian Pension Fund, Abu Dhabi Investment Fund and those from the US, Europe and Singapore, have shown keen interest in buying them.
Ever since the demonetisation move, NHAI has been conducting traffic studies related to such projects, the revenue streams available and their overall viability. Close to 75 operational NH projects completed under public funding have been preliminarily identified for potential monetisation using the Toll Operate Transfer (TOT) Model.
The corpus generated from proceeds of such project monetisation could be utilised by the government to meet its fund requirements regarding future development and operation and maintenance of highways in the country and could address development of highways in unviable geographies.
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