Asset Monetisation India 2025

In a significant step to boost infrastructure funding, the Indian government has successfully raised ₹1,42,758 crore through Asset Monetisation India till FY25. This strategic move ensures that public infrastructure projects can be expanded without increasing the country’s fiscal burden.

By leveraging mechanisms such as the Toll-Operate-Transfer (ToT) model, India's Infrastructure Investment Trusts (InvIT India) and Securitisation India, the government is enabling private funding for public assets, facilitating efficient capital recycling in the infrastructure sector.

Key Highlights of Asset Monetisation India

• Total funds raised till FY25: ₹1,42,758 crore

• FY25 projection: ₹30,000 crore

• Supports the government asset monetisation targetsfor  FY25 India

• Promotes public infrastructure financing without increasing public debt

• Encourages asset recycling in India for faster economic development

Major Asset Monetisation Models in India

1. Toll-Operate-Transfer (ToT) Model India

The Toll-Operate-Transfer model is a major component of Asset Monetisation India:

• Open market bids are invited for mature highway assets

• Concession periods range from 15 to 30 years

• Awarded to the highest bidder above a reserve price

• Ensures immediate liquidity from monetised highway assets

• Example: Various stretches of national highways across India

This model is a key tool for monetisation of highway assets, allowing the government to fund new infrastructure without additional fiscal pressure.

2. Infrastructure Investment Trusts (InvIT India)

InvITs allow long-term private investment in public infrastructure and are an important part of Asset Monetisation India:

• NHAI operates the National Highways Infra Trust (NHIT) under the InvIT model

• Road stretches are offered to NHIT for 15–30 years

• Funds are raised via bonds and SEBI-regulated unit sales

• Offers are compared to reserve prices for value maximisation

The role of InvITs in infrastructure financing in India is vital for mobilising private capital while ensuring asset monetisation benefits.

3. Securitisation India

Securitisation of toll revenue in India is another effective financing mechanism under Asset Monetisation India:

• Long-term finance is raised through banks and bonds

• Toll revenue from stretches like the Delhi-Mumbai Expressway is securitised

• Managed via Special Purpose Vehicles (SPVs)

• Enables infrastructure finance without additional budgetary allocations

This method strengthens public asset leasing strategies and supports capital recycling across sectors.

Government Strategies and Policies

The government’s asset monetisation policy in India revolves around the National Monetisation Pipeline India, which aims to:

• Monetise mature assets and reinvest proceeds in new projects

• Encourage private funding for public assets

• Promote asset recycling in India for sustainable development

• Ensure faster implementation of infrastructure projects under budget constraints

The benefits of the National Monetisation Pipeline in India include fiscal prudence, accelerated infrastructure growth, and enhanced asset utilisation efficiency.

How Asset Monetisation Works in India

The process of how asset monetisation works in India involves:

1. Identifying mature infrastructure assets (brownfield assets)

2. Choosing an appropriate model: ToT, InvIT, or Securitisation

3. Inviting bids from private investors or selling units/bonds

4. Ensuring reserve price compliance and awarding the project

5. Using proceeds for new infrastructure projects

This asset monetisation strategy for brownfield infrastructure ensures sustainable infrastructure funding without increasing public debt.

Benefits of Asset Monetisation in India

• Facilitates private funding for public assets

• Reduces fiscal burden and promotes economic stability

• Accelerates infrastructure growth and development

• Supports capital recycling and efficient use of existing assets

• Provides long-term investment opportunities through InvIT India and the ToT model in India

Quick Revision Table for SSC Aspirants

Final Thoughts

Asset Monetisation India is a strategic initiative that transforms mature public infrastructure assets into funding for new projects, ensuring sustainable growth without adding to the fiscal burden. By leveraging models like the Toll-Operate-Transfer (ToT) model in India, Infrastructure Investment Trusts (InvIT India), and Securitisation India, the government efficiently mobilises private investment while promoting capital recycling.

This approach strengthens public infrastructure financing and accelerates economic development by monetising highways, toll roads, and other brownfield assets.

The National Monetisation Pipeline India FY25 sets clear targets, making the process transparent, structured, and investment-friendly.