National Highways Authority of India’s Asset Monetization strategy aligns with Assets Monetization Plan - 2025-30. 

Key provisions of Strategy:

• Aim: To unlock value of operational National Highway assets and increase Public Private Partnership in India’s infrastructure development.
• Three core pillars: Value Maximization of Assets, Transparency of Processes, and market development.
•  Three modes of asset mobilization: Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitization models.
  • Toll-Operate-Transfer (ToT): Concessionaires by paying lump sum amount take rights to maintain and operate the road; in lieu of this, s/he will collect user fees (toll) for these roads for the duration of the concession period.
  • Infrastructure Investment Trust (InvIT): It is like a mutual fund, which enables direct investment of money from individual/institutional investors in infrastructure.
    • Earn income through tolls, rents, interest or dividends from their investments.
    • Introduced in India in 2014 and regulated by Securities and Exchange Board of India (SEBI).
  •  Securitization model: Securitization is the process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities. 
    • The interest and principal payments from the assets are passed through to the purchasers of the securities.

Asset Monetization Definition: Limited period transfer of performing assets (or disposing of non-strategic / underperforming assets) to unlock "idle" capital and reinvesting it in other assets or projects that deliver improved or additional benefits. Need: Unlocks value from public investment in infrastructure, and utilizes productivity in private sector. First suggested by the Vijay Kelkar Committee in 2012 on the roadmap for fiscal consolidation.