Andhra Pradesh to See Further National Highway Asset Monetisation Under Centre's 2025-30 Plan
Union Minister for Road Transport and Highways Nitin Gadkari has informed the Lok Sabha that Andhra Pradesh will witness additional National Highway (NH) asset monetisation as part of the Centre's Asset Monetisation Plan for the period 2025–30. Key stretches of NH-16 have been specifically identified for the upcoming financial year, marking a significant step in infrastructure funding.
Minister Outlines Objectives and Progress of NHAI Monetisation Programme
In response to a question from TDP MP Lavu Sri Krishna Devarayalu, Minister Gadkari detailed the objectives and current progress of the National Highways Authority of India's (NHAI) Asset Monetisation Programme. This initiative is derived from the broader National Monetisation Pipeline and aims to unlock the economic value of completed public-funded highway assets by leveraging private capital and enhancing operational efficiencies.
The funds generated through this monetisation process are earmarked for reinvestment into new highway projects, capacity expansion efforts, and the development of greenfield infrastructure across the country. This strategic approach ensures that revenue from existing assets fuels future growth and connectivity improvements.
Substantial Revenue Raised Through Various Monetisation Modes
Gadkari reported that a total of ₹1,52,028 crore has been raised through diverse monetisation modes to date. The breakdown includes:
- ₹58,265 crore via the Toll-Operate-Transfer (TOT) model, covering 2,931 km of highways.
- ₹43,638 crore through Infrastructure Investment Trusts (InvIT), encompassing 2,342 km.
- ₹50,125 crore via securitisation, covering 1,312 km.
Overall, this amounts to 6,586 km of National Highways that have been monetised so far, demonstrating the programme's scale and effectiveness in mobilising resources for infrastructure development.
Andhra Pradesh's Role in Past and Future Monetisation Efforts
Several NH stretches in Andhra Pradesh have already been monetised under previous TOT and InvIT bundles. These include critical corridors such as Gundugolanu–Devarapalli–Kovvuru, Narasannapeta–Ranasthalam, Anandapuram–Pendurti–Ankapalli, Ranasthalam–Hanumanthavaka, Chittoor–Mallavaram–Gadanki, and border sections with Tamil Nadu and Karnataka.
Looking ahead, two major NH-16 stretches in Andhra Pradesh have been identified for monetisation in the 2025–26 financial year:
- The six-lane Gundugolanu–Chinna Avutapalli section.
- The Chilakaluripet–Vijayawada corridor.
These selections highlight the state's strategic importance in the national highway network and its potential for generating significant revenue through asset recycling.
Fund Allocation and Strategic Benefits
Minister Gadkari clarified the allocation of funds raised through these monetisation models. Under TOT and InvIT, the proceeds are transferred to the Consolidated Fund of India and then redirected back to NHAI. This reinvestment supports new construction projects and debt servicing, ensuring financial sustainability.
For securitisation, the funds are being channelled specifically into the Delhi–Mumbai Expressway, a flagship infrastructure project aimed at enhancing connectivity between two major economic hubs.
MP Lavu Sri Krishna Devarayalu emphasised that the Centre's strategy to recycle capital from operational highway assets in fast-developing states like Andhra Pradesh is crucial for meeting the growing infrastructure demands. This approach not only optimises existing resources but also accelerates the development of new projects, fostering economic growth and improved transportation networks across the region.
