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Posted 03 Apr 2024

2 min read

  • MoRTH monetises its assets under three different modes:
    • Toll-operate-transfer (TOT): Right of collection of fees for selected operational National Highway projects constructed through public funding is assigned to a concessionaire against upfront payment of a lump-sum amount to NHAI.
      • Operation and Maintenance obligation of projects is also with the concessionaire.
    • Infrastructure Investment Trust (InvIT): InvITs are investment scheme like mutual funds that allow investment from individuals and institutional investors in infrastructure projects
    • Securitisation: In this, certain types of assets are pooled so that they can be repackaged into interest-bearing securities. 

 

  • About Asset Monetisation (AM)
    • Background: The idea of AM for India was first suggested by a committee led by economist Vijay Kelkar in 2012.
    • Definition:  AM is the process of creating new sources of revenue for the government by unlocking the economic value of unutilised or underutilised public assets by transferring them for a limited period to a private sector entity.
      • It is also known as ‘asset or capital recycling’.
      • Unlike privatisation, in AM the ownership remains with the government/ public authority.
      • Objectives
        • Unlocks value from public investment in Infrastructure.
        • Taps private sector efficiencies in operations and management of infrastructure.
      • Initiative: National Monetisation Pipeline (NMP) for the period FY 2022-2025.
  • Tags :
  • Asset Monetization
  • Toll-operate-transfer (TOT):
  • Infrastructure Investment Trust (InvIT):
  • Securitisation
  • National Monetisation Pipeline (NMP)
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