The National Highways Authority of India (NHAI) is considering new ways to boost transportation projects in the country over the next several years, and will look to financing models such as asset recycling to do so.
The initiative was spurred by a request from the Prime Minister’s Office to reorganize the NHAI and revamp some of its financing models, Business Standard reports.
The minister of road transport and highways, Nitin Gadkari, said the NHAI is planning to raise INR 85,000 crore ($11.8 billion) by 2025 by monetizing projects after two years of operation and build-operate-transfer projects after their concessions are completed.
The fundraising would take place through the infrastructure investment trusts, which NHAI is currently working to establish.
The NHAI has already started monetizing assets through toll operate transfer strategy. The minister expects an INR 9,700 crore ($1.35 billion) bundle of funds secured by Macquarie to be the main source of funding over the next couple of years.
