ÑDz©ÌåÓý¹ÙÍøÊ×Ò³

NHPC to monetise 10 projects to generate funds
ROADS & HIGHWAYS

NHPC to monetise 10 projects to generate funds


As reported, in tune with India’s enterprising infrastructure goals, the state-run public sector units (PSUs) are seeking out means to garner funds, which include tapping the infrastructure investment trust (InvIT). 

Hydropower giant NHPC, the first firm to take up the idea, is planning to leverage InvITs to monetise around 10 of its 22 projects. 

InvITs are essentially, trusts that handle all infrastructure assets that can generate income, usually providing investors with regular yield and a liquid method of investing in projects. 

To take this forward, NHPC is set to appoint an advisor in order to fully understand the feasibility of all asset monetisation options for hydropower projects. The consultant will list out all possible routes and will also conduct a cost-benefit analysis of various schemes.

In her maiden budget, Finance Minister Nirmala Sitharaman has increased the divestment target from Rs 900 billion to Rs 1.5 trillion for the current fiscal year, with a special focus on consolidating PSUs and strategic disinvestment. All proceeds from the disinvestment will aid the Centre to boost India’s infrastructure by investing around Rs 100 trillion in the next five years. 

The National Highways Authority of India (NHAI) is also looking at generating funds of around Rs 850 billion through InvITs and the toll-operate-transfer (ToT) model.

As reported, in tune with India’s enterprising infrastructure goals, the state-run public sector units (PSUs) are seeking out means to garner funds, which include tapping the infrastructure investment trust (InvIT). Hydropower giant NHPC, the first firm to take up the idea, is planning to leverage InvITs to monetise around 10 of its 22 projects. InvITs are essentially, trusts that handle all infrastructure assets that can generate income, usually providing investors with regular yield and a liquid method of investing in projects. To take this forward, NHPC is set to appoint an advisor in order to fully understand the feasibility of all asset monetisation options for hydropower projects. The consultant will list out all possible routes and will also conduct a cost-benefit analysis of various schemes.In her maiden budget, Finance Minister Nirmala Sitharaman has increased the divestment target from Rs 900 billion to Rs 1.5 trillion for the current fiscal year, with a special focus on consolidating PSUs and strategic disinvestment. All proceeds from the disinvestment will aid the Centre to boost India’s infrastructure by investing around Rs 100 trillion in the next five years. The National Highways Authority of India (NHAI) is also looking at generating funds of around Rs 850 billion through InvITs and the toll-operate-transfer (ToT) model.

Next Story
Infrastructure Urban

Reliance, Diehl Advance Pact for Precision-Guided Munitions

Diehl Defence CEO Helmut Rauch and Reliance Group’s Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence’s long-term commitment to the Indian market and its support for the Indian Government’s Make in India initiative. The partnership’s current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the “Vulc..

Next Story
Infrastructure Urban

Modis Navnirman to Migrate to Main Board, Merge Subsidiary

Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company’s growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..

Next Story
Infrastructure Urban

Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025

The Bharat InvITs Association’s industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States� share of global activity below 15 per cent. Meanwhile, in..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement