India’s road network is ahead of China’s & second only to the USA!
India’s road network is second to the USA in the whole world. It is way ahead of China’s road network! No wonder several road asset funds are looking towards the National Highways Authority of India’s Asset Monetisation Plan. India’s road network is over three times Brazil’s and over four times Russia’s. Here are the top 10 countries by largest road network size:
1. United States: 6,832,000 km
2. India: 6,700,000 km
3. China: 5,200,000 km
4. Brazil: 2,000,000 km
5. Russia: 1,538,875 km
6. Japan: 1,218,772 km
7. France: 1,053,215 km
8. Canada: 1,042,300 km
9. Australia: 873,573 km
10. Mexico: 817,569 km
The National Highways Authority of India (NHAI) has drawn up an ambitious plan to monetise 46 operational highway stretches of total length of 2,612 kms in the current financial year to beef up resources for its road building programme. The pipeline of projects that have been identified for monetisation in 2023-24 could be valued at around Rs 60,000 crore. NHAI had identified 14 stretches of 1,750 km length for monetisation in 2022-23 but could complete the process for only six highway stretches of 558 km and raise Rs 13,511 crore.
Asset monetisation remains a focal point for NHAI, with a list of 46 projects spanning over 2,612 kms earmarked for monetisation in FY24. NHAI’s target for FY24 is to raise between Rs 100 billion to Rs 150 billion through asset monetisation under the Toll-Operate-Transfer (ToT) strategy. In total, NHAI aims to generate up to Rs 450 billion through monetisation in FY24, utilising various funding models, including Infrastructure Investment Trusts and the securitisation of road assets constructed by NHAI’s Special Purpose Vehicles (SPVs).
The 13th India Roads Conference is scheduled on 12th October 2023 in Delhi.