Total Asset Monetization Program of Ministry of Road Transport & Highways (MoRTH) crossed Rs.1 Lakh Crore | Current Affairs | Vision IAS
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    Total Asset Monetization Program of Ministry of Road Transport & Highways (MoRTH) crossed Rs.1 Lakh Crore

    Posted 03 Apr 2024

    2 min read

    • MoRTH monetises its assets under three different modes:
      • Toll-operate-transfer (TOT): Right of collection of fees for selected operational National Highway projects constructed through public funding is assigned to a concessionaire against upfront payment of a lump-sum amount to NHAI.
        • Operation and Maintenance obligation of projects is also with the concessionaire.
      • Infrastructure Investment Trust (InvIT): InvITs are investment scheme like mutual funds that allow investment from individuals and institutional investors in infrastructure projects
      • Securitisation: In this, certain types of assets are pooled so that they can be repackaged into interest-bearing securities. 

     

    • About Asset Monetisation (AM)
      • Background: The idea of AM for India was first suggested by a committee led by economist Vijay Kelkar in 2012.
      • Definition:  AM is the process of creating new sources of revenue for the government by unlocking the economic value of unutilised or underutilised public assets by transferring them for a limited period to a private sector entity.
        • It is also known as ‘asset or capital recycling’.
        • Unlike privatisation, in AM the ownership remains with the government/ public authority.
        • Objectives
          • Unlocks value from public investment in Infrastructure.
          • Taps private sector efficiencies in operations and management of infrastructure.
        • Initiative: National Monetisation Pipeline (NMP) for the period FY 2022-2025.
    • Tags :
    • Asset Monetization
    • Toll-operate-transfer (TOT):
    • Infrastructure Investment Trust (InvIT):
    • Securitisation
    • National Monetisation Pipeline (NMP)
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