CARE

CRISIL

ICRA

Asset reconstruction companies (ARCs) are expected to witness their cumulative recovery rate  for stressed road projects rising by 700-1000 basis points (bps) this fiscal after doubling to 50-55 per cent last fiscal, stated a report by CRISIL Ratings. This, it added, will  be driven by faster completion or descoping of pending construction resulting in start of annuities by the National Highways Authority of India (NHAI), thereby enabling quicker resolutions or restructuring of debt. Also, a healthy increase in toll collections is expected to support recoveries CRISIL  Ratings analysed the security receipts (SRs) rated by the firm, covering around 2,500 lane km of underlying stressed road projects with total principal debt of approximately Rs 6,000 crore (around 60 per cent of road assets with ARCs), to release the findings. These encompass projects under build operate and transfer model (toll assets) and hybrid annuity model under NHAI which were acquired at average haircut of 40 per cent by ARCs.

ARCs to witness recovery from stressed roads rising by 700-1000 bps this fiscal, says CRISIL

The National Highways Authority of India (NHAI) has identified 86 national highway stretches, spanning approximately 4,912 km, for monetisation under the Toll-Operate-Transfer (TOT) model. This initiative allows private entities to lease highway assets for 15-30 years in exchange for an upfront concession fee, granting them the right to operate, maintain, and collect tolls. Having already monetised five stretches (Bundles 11, 12, 13, 14, and 16), NHAI plans to award three additional bundles by the end of the current financial year. The authority aims to raise Rs 540 billion in FY 2025 through the monetisation of road assets. The proceeds will be used to fund new highway projects and reduce its debt, which stood at Rs 2.76 trillion as of December 2024.

NHAI Targets Rs 540 Billion Through Highway Monetisation.

Adani Road Transport has emerged as the top bidder for the latest highway assets offered by the National Highways Authority of India (NHAI) under the Toll Operate Transfer (ToT) model. The company has submitted a bid of Rs 16.92 billion for a group of road stretches bundled together for monetisation. This marks the 15th bundle of highways monetised through the ToT model, which allows the successful bidder or concessionaire to collect toll revenue for 20 years in exchange for an upfront payment. Under the National Monetisation Plan, NHAI’s Total Asset Monetization Program has exceeded Rs 1 trillion, comprising Rs 489.95 billion from ToT, Rs 259 billion from Infrastructure Investment Trusts (InvIT), and Rs 420 billion from securitisation. Bids for highways in ToT Bundles 17, 18, and 19 remain open.

Adani Wins NHAI's TOT Project with a Rs 16.92 Billion Bid

NHAI’s project implementation expenditure has increased substantially with higher land acquisition costs and more projects awarded on EPC and HAM basis, which require funding from NHAI.

As on March 31, 2021, NHAI had contingent liability of Rs. 92,144 crores in arbitration and Rs. 6,102 crores in court cases; most of which are from disputed claims filed by contractors/developers.

The issuer has made timely interest payments.

Sh. Santosh Kumar Yadav(IAS), Chairman

NHAI is an autonomous GoI authority under the Ministry of Road Transport and Highway, GoI has statutory and regulatory powers over NHAI and supports it in major policy decisions. The GoI provides financial support to the authority in the form of budgetary allocations.

NHAI has stable funding sources owing to allocation of fuel cess funds, additional budgetary resources, project revenues and flexibility to raise funds at competitive borrowing costs

Rating agency	Rating	Needle position
CARE	AAA Stable	near High Safety
CRISIL	AAA Stable	near High Safety
IND	AAA Stable	near High Safety
ICRA	AAA Stable	near High Safety

Security Name: 7.26% National Highways Authority Of India 10 Aug 2038

ISIN: INE906B07IY8

YOUR EARNING

YOUR RISK

Repayment Priority

Security with Collateral?

LIQUIDITY INDICATOR #

ISSUER

Recent News

Related Videos

STEPS TO BUY THIS BOND

Information required for KYC

How to exit the investment?