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The National Highways Authority of India (NHAI) has decided to expand the list of highway stretches for monetization in the third round of Infrastructure Investment Trust (InVIT). This decision is driven by the goal to achieve the asset monetization target for the fiscal year 2023-24 through the InVIT mode. NHAI has now added five new highway stretches to the existing six, bringing the total length to be monetized in the third round to 1,029 km, up from the initial 580 km.
These additional stretches will be included in the offering to the National Highways Infra Trust, an InVIT sponsored by NHAI. The trust involves key stakeholders such as the Ontario Teachers’ Pension Plan and Canada Pension Plan Investment Board, each holding a 25% stake, while NHAI holds 15.86%, and SBI Balanced Advantage Fund holds 9.86%.
The decision to modify and expand round 3 of InVIT is influenced by the progress made toward the asset monetization target for the fiscal year and aligns with NHAI's strategic goals. The new highway stretches added to round 3 include Kaljhar to Patacharkuchi in Assam (27 km), Lakhnadon to Mahagaon (74 km), and Mohgaon to Khawasa (43 km) in Madhya Pradesh, along with Hubli to Haveri (62 km), Davangere to Haveri (71 km), and Davangere to Chitradurga (72 km) in Karnataka.
For the entire fiscal year 2023-24, NHAI aims to generate between Rs 10,000 to Rs 15,000 crore through monetization using InVIT. This forms part of the broader target of raising Rs 45,000 crore through asset monetization during the same period. Notably, the six sections initially offered in round 3 remain on the list, covering various regions like Madhya Pradesh, West Bengal, Uttar Pradesh, and Assam.
Some of the stretches that have been added to the list are those that were identified for monetisation through the fourth round of InVIT.
The present move reflects NHAI's proactive approach to leverage InVIT as a tool for efficient asset monetization, contributing to the organization's financial goals and infrastructure development initiatives.
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