In order toleverage the value of National Highways assets engaged in the development ofIndia's infrastructure and enhance public-private partnership, the NationalHighways Authority of India (NHAI) has released its first ‘Asset MonetisationPolicy for the Road Sector’. The strategy presents a structured framework thatprovides a robust framework for raising capital through Toll-Operate-Transfer(ToT), Infrastructure Investment Trusts (INVITTs), and Securitization models.

These tools havehelped the NHAI raise over INR1.40-lakh-crore for National Highways with alength of over 6,100 km under the National Monetisation Pipeline.

The policy isbased on three key pillars, which include increasing the value of governmentroad assets, transparency of processes and dissemination of investor-relatedinformation, and developing the market by increasing the number of investors,as well as promoting stakeholder participation.

Speaking aboutthe policy document released, Santosh Kumar Yadav, Chairman, National Highways Authorityof India said, “The unique approach adopted by NHAI for asset monetization not onlyensures economic sustainability but also opens up opportunities for the privatesector, harnesses advanced technologies, and enhances the quality and longevityof our road assets. The successful implementation of this strategy will giveNHAI a steady flow of financing, which will reduce its dependence on traditionalfunding sources.”