The asset monetization plan relies critically on road assets: Crisil


The success of the Center’s recently announced National Monetization Pipeline (NMP) plan is critically dependent on road assets, rating agency Crisil said on Monday.

The agency also said that the state-owned National Highways Authority of India’s asset pool could generate 15% of its potential financing needs over the next five fiscal years.

As part of the ambitious national asset monetization plan, the government aims to generate Rs 1.6 million lakh by monetizing 26,700 km of national highways with four and more lanes.

“The monetization of road assets is key here, as it accounts for 27% of NPM in terms of value,” the rating agency said.

Crisil noted that the NHAI has significantly increased its pace of highway construction, from just 2,623 km in fiscal year 2017 to 4,175 km in fiscal year 2021. percent of NHAI’s funding needs in fiscal year 2022 to 2026, compared to less than 5 percent in fiscal year 2017-2021, ”he said.

Crisil said that given Bharatmala’s lofty goals and the construction of high-value highways, as well as the higher repayment of loans, NHAI’s fund requirements are expected to double to 10 lakh crore in the next five. years compared to the previous 5. years. “If these funding requirements are met, we estimate that the NHAI could build 25,000 km of national highways in fiscal year 2022-2026, compared to 17,228 km in fiscal year 2017-2021,” he added.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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