The National Highways Authority of India (NHAI) has the aiming to increase public-private partnerships in infrastructure development. It presents a structured framework to mobilise capital through toll-operate-transfer, infrastructure investment trusts and securitisation models.
The NHAI has previously raised more than INR140 billion (USD1.6 billion) through these models.
The strategy is based on maximising the value of government road assets, achieving transparency, distribution of relevant information to investors, and developing the market through investor base and stakeholder engagement.
The NHAI hopes this will lead to financial sustainability, improve road assets in India and introduce advance technology.
The strategy will provide a steady alternative source of funding for the NHAI, reducing its reliance on traditional sources and allow licensing of a public-sector asset to a private-sector company for a one-time or periodic consideration through a concession or contractual framework. This method will enable the authority to convert existing assets into sources of funds, which can be invested into developing new assets.
