Government achieves ~Rs 21,000 crore of road asset monetisation in FY22

News: MoRTH has achieved an overall asset monetisation value of ~₹ 21,000 crore in FY22 as part of the National Monetisation Pipeline. This included Rs 15,000+ crore of asset monetisation and ~₹ 5,000 crore through securitisation of toll. 

Views: While MoRTH had overall plans to monetize Rs 30,000 in FY22, it fell short possibly due to disruptions caused by Covid-19 and lack of risk appetite seen from foreign investors in the wave of Russia-Ukraine war. Nevertheless, the government has started focusing on innovative sourcing of funds such as monetization of the completed roads assets through ToT/InVIT routes, in order to keep momentum in awarding/construction and taper NHAI's borrowings to some extent. For FY23, the government is targeting Rs 32,855 crore worth of roads to get monetized.

Impact: Neutral