MoRTH seeks Sebi approval to auction roads to InvITs
News: MoRTH has sought fresh approval from Sebi to operationalise a new plan for the monetisation of assets under it. The ministry wants all future operational road projects to be offered under the bidding route to InvITs to ascertain proper valuations and get better returns. Under the auction, all InVITs could ascribe their valuation for NHAI’s assets. A project will be awarded to the best quote rather than NHAI InvIT getting the road projects on nomination at a mutually agreed price.
Views: In the next quarter, MoRTH proposes to offer Rs 2,000-2,500 crore worth of NHAI’s operational highways under bidding route exclusively to InvITs while NHAI is targeting to monetize Rs 20,000 crore of assets with a combined length of 1,750 km during FY23 amid ongoing economic uncertainties. Monetisation of completed assets would keep momentum in road awardings and construction.