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NHAI, vide policy circular dated July 29, 2024, formed a dedicated Asset Monetisation Cell ("AMC") which will be based out of its headquarters. The AMC will oversee the monetisation of completed and operational highway assets of NHAI and fulfil the goal of NHAI's 'Asset Monetisation Program' i.e., to "unlock the value of investments in public sector assets by tapping into private sector capital and efficiencies which can thereafter be leveraged for capacity augmentation/greenfield infrastructure creation".
Some of the key functions of the AMC will be as follows:
- conduct market analysis and feasibility studies to identify potential assets of NHAI for monetisation;
- identify suitable projects for monetisation, focusing on those with established toll collection records and potential for revenue generation;
- formation of public Infrastructure Investment Trust ("lnvIT");
- engage with stakeholders, including investors, financial institutions and government bodies to facilitate the monetisation process;
- review and ensure the accuracy and completeness of all documentation related to asset monetisation projects;
- maintain a central repository of all data related to asset monetisation in digital format;
- incorporate international best practices and innovative approaches to enhance the efficiency and effectiveness of asset monetisation;
- monitor the performance of monetised assets and ensure timely reporting to senior management of NHAI; and
- ensure compliance with regulatory standards and guidelines issued by Securities and Exchanges Board of India and other relevant authorities.
The aforementioned policy circular also details the composition of the AMC, qualification criteria for becoming a part of the AMC, the remuneration to be offered to members of the AMC and the tenure of the members of the AMC.
Source: NHAI Policy Circular dated July 29, 2024
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