Total Asset Monetization Program of Ministry of Road Transport & Highways (MoRTH) crossed Rs.1 Lakh Crore

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.

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