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NHAI has monetised 390-km road via InvIT mode in FY22 so far: Gadkari

NHAI has monetised 390-km road via InvIT mode in FY22 so far: Gadkari

An additional length of 450 km has also been bid out through toll operate transfer mode in three bundles, said Transport and Road Minister Nitin Gadkari.

Transport and Road Minister Nitin Gadkari Transport and Road Minister Nitin Gadkari

 Union Transport and Road Minister Nitin Gadkari on Thursday said that during the current Financial Year, the National Highways Authority of India (NHAI) has monetised a 390-km road under Infrastructure Investment Trust (InvIT) mode, with a concession value of Rs 7,350 crore and CAPEX of Rs 495 crore.

An additional length of 450 km has also been bid out through toll operate transfer (TOT) mode in three bundles. However, the reserve price will not be disclosed as per the government's decision, he said.

Gadkari said 86 stretches with an aggregate length of around 4,912 km have been identified. The priority mode of monetisation, expected upfront realisation amount and capital cost involved, will be determined as per the government norms. These will depend on project viability and market appetite at the time of bidding.

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The Union minister said the NHAI has identified three major national highway stretches for monetisation in the next two years i.e. FY23 to FY25. These are 5,500 km in 2022-23; 7,300 km in 2023-24; and 8,900 km in 2024.

On user fee, the minister said it's levied as per the NH Fee Rules, and the concessionaire only collects the fee as per the fee notification.

Gadkari last month had said the government has set an ambitious aim of doubling the automobile sector’s annual turnover to Rs 15 lakh crore by 2026 to transform India into a global manufacturing hub. He had said the current annual turnover of the automobile sector in the country stands at Rs 7.5 lakh crore that includes Rs 3 lakh crore worth of exports.

But, he said, the expansion of vehicle scrappage and recycling has immense potential in bringing down input costs in the long run and making the local industry more competitive in the global markets.

Also read: Aim to take Indian auto sector's turnover to Rs 15 lakh crore in five years: Nitin Gadkari