NEW DELHI: The National Highways Authority of India (NHAI) will come up with a compensation framework for private highway operators and investors, including overseas pension funds, who have betted on the highway sector for the losses they incur after rollout of “annual pass” for private vehicles on national highways and expressways from Aug 15.
This is particularly important considering that the highway sector has recorded the best outcomes in govt’s monetisation programme and NHAI will receive greater focus for the purpose in the next five years.
Sources in the road transport ministry said a committee will work out the framework over the next one month after holding deliberations with the stakeholders.
Players across road infrastructure value chain, including companies such as Cube Mobility and IRB Infrastructure and the Adani group, sovereign fund and asset managers like NIIF, and Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board have invested heavily in the sector.
There are also several NH stretches where private highway builders are collecting toll as per ongoing contracts. “There are some apprehensions among private investors who have taken on completed projects under the monetisation programme about their losses since they have paid upfront, based on projection of traffic and toll revenue. But since we have to keep in mind the interests of all stakeholders, especially users, we are sticking to the Aug 15 timeline,” a top NHAI official said.
NHAI has monetised its projects through three models — Toll Operate Transfer (TOT), infrastructure investment trusts (InvITs) and securitisation.
The official added that work on the annual pass scheme had started months back and all implications have been worked out, based on past toll collection data. Data show that NHAI has achieved 71% of the monetisation target in the highway sector, raising Rs 1.2 lakh crore out of the targeted Rs 1.6 lakh crore till FY2024-25.
This is particularly important considering that the highway sector has recorded the best outcomes in govt’s monetisation programme and NHAI will receive greater focus for the purpose in the next five years.
Sources in the road transport ministry said a committee will work out the framework over the next one month after holding deliberations with the stakeholders.
Players across road infrastructure value chain, including companies such as Cube Mobility and IRB Infrastructure and the Adani group, sovereign fund and asset managers like NIIF, and Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board have invested heavily in the sector.
There are also several NH stretches where private highway builders are collecting toll as per ongoing contracts. “There are some apprehensions among private investors who have taken on completed projects under the monetisation programme about their losses since they have paid upfront, based on projection of traffic and toll revenue. But since we have to keep in mind the interests of all stakeholders, especially users, we are sticking to the Aug 15 timeline,” a top NHAI official said.
NHAI has monetised its projects through three models — Toll Operate Transfer (TOT), infrastructure investment trusts (InvITs) and securitisation.
The official added that work on the annual pass scheme had started months back and all implications have been worked out, based on past toll collection data. Data show that NHAI has achieved 71% of the monetisation target in the highway sector, raising Rs 1.2 lakh crore out of the targeted Rs 1.6 lakh crore till FY2024-25.
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