A storm of money will come from the roads, the government has made a plan of Rs 2 lakh crore!

According to the rating agency, only 12 per cent of the projects awarded in the pre-2020 period have been delayed due to the weaknesses of their operators. 88 percent of road projects awarded before March 2020 have successfully achieved operational status.

The government of the country is continuously focusing on increasing the income. There are many schemes in which the government has also been successful. Now the central government is considering adopting a new method to fill the country's treasury. The government is going to make such a plan so that income can be generated from roads.

According to rating agency CareEdge, the Indian government is planning to generate revenue of about two trillion rupees (equivalent to $24.1 billion) in the coming years by monetizing highways.

According to the agency's report, the National Highway Authority of India expects to build about 4,000 to 4,500 kilometers (equivalent to 2,796.2 miles) of new roads annually over the next three years. The government can generate revenue from these assets using Infrastructure Investment Trust (InvIT) or Toll-Operate-Transfer (TOT) model.

Delay in 12 percent projects before 2020

The government's current plan, which is based on the public-private partnership model, has been successful as 88 percent of the road projects awarded before March 2020 are now operational and can be monetized. The rating agency said only 12 per cent of projects awarded in the pre-2020 period have been delayed due to weaknesses in their operators.

88 percent of road projects awarded before March 2020 have successfully achieved operational status. What is noteworthy is that 12 percent of these projects have been delayed, and a significant proportion, i.e. 75 percent of the delayed projects are due to weak sponsors.

InvIT was launched in November 2021

Maulesh Desai, director, CareAge Ratings, said while strong sponsors are expected to profit from healthy balance sheet indicators that provide them financial flexibility, stronger to slightly lighter sponsors with substantial under construction portfolios and strict approval conditions are better off. Faces increased financing risk.

The National Highway Authority of India launched an InvIT in November 2021 to raise about Rs 102 billion by December 2022. Local media reported that the Indian government is planning to raise an additional Rs 100 billion through another tranche of InvITs before the end of the financial year.