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Mint
12-06-2025
- Business
- Mint
NHAI eyes two InvIT rounds, auction of road bundles to private trusts for the first time
The National Highways Authority of India (NHAI) aims to raise ₹ 20,000 crore via two offerings from its own infrastructure investment trust (InvIT) this fiscal, two people aware of the plans said. It also plans to offer completed highway stretches to private InvITs for the first time, as part of an effort to raise up to ₹ 60,000 crore during the year, they said. NHAI bundles stretches of operational highways into InvITs and offers its units to investors, who get a regular share of road tolls. Ever since the highway InvIT programme was launched in 2020, the authority has had a single offering every year through its own InvIT–National Highways Infra Trust (NHIT). So far, it has raised ₹ 43,638 crore through InvITs. 'Under its asset monetization strategy document, NHAI has identified 24 highway stretches covering a distance of 1,472 km for monetizationin road project bundles could be added during the year to see that the exercise results in ₹ 50,000-60,000 crore resource mobilization for the government in FY26,' one of the two people cited above said on the condition of anonymity. 'This would be twice the ₹ 30,000 crore target given in the outcome budget for FY26.' NHAI believes the market for these trusts has matured, prompting it to consider two offerings this year, the person cited above said. Its last InvIT in FY25 raised ₹ 17,738 crore. NHIT currently has over 350 investors and close to 20 operational highway projects. To be sure, NHAI raised ₹ 28,724 crore in FY25 through InvITs and toll-operate-transfer (TOT) contracts, against a stiff targetof ₹ 40,000 crore. However, the overall highway sector could reach closer to its targeted monetisation of ₹ 1.6 trillion under National Monetisation Pipeline-1 between FY22 and FY25, closing the fiscal with about ₹ 1.58 trillion. "The two rounds of InvITs will help the trust to get over a third of monetization funds of about ₹ 60,000 crore expected to be targeted for FY26,' the second person said on the condition of anonymity. 'The road assets identified by NHAI for monetization itself is valued at over ₹ 40,000 crore, and if more bundles are identified, the ₹ 60,000 crore aspirational target could be easily achieved.' Besides, NHAI also plans to auction completed road and highway bundles directly to private sector InvITs, the second person said. This will be the first time that completed and revenue-generating highways under the 'toll operate transfer (ToT)' mechanism will be directly and exclusively offered to private InvITs, who could then mobilize global investments by offering subscription of InvIT units. So far, the government has been offering road projects by nomination only to NHIT, whileauctioning ToT projects to private highway developers who could then transfer the road bundles to their respective InvITs. An NHIT official said on the condition of anonymity that an exclusive InvIT round may be a possibility if it attracts dedicated trusts formed for infra investments. The official said several small road bundles with the NHAI could be offered only to InvITs to attract diverse investors from across the globe to invest in Indian infrastructure. Queries emailed to NHAI and the ministry of road transport and highways remained unanswered till press time. 'This is an interesting variation to the ToT (toll-operate-transfer) model and has pros and cons. As a pro, InvITs are considered to have low cost of capital for investors and, hence, should offer best prices. Further, the assurance of reduced competition may spur InvITs to participate more vigorously in ToT bids,' said Kuljit Singh, partner and national infrastructure leader, EY India. 'As a con, InvITs that can acquire a large number of ToT projects may be limited as they typically do not have any significant dry powder available for acquisitions. Typically, InvITs raise just as much funds as are necessary to deploy immediately. Hence, this variation may lead to a reduction in competition and impact revenue realisation,' said Singh. The NHAI monetizes assets through three key modes: toll-operate-transfer, InvITs, and securitization (project-based financing through special purpose vehicles). These instruments have helped the agency raise over ₹ 1.4 lakh crore across more than 6,100 km of national highways under the National Monetisation Pipeline 1. With a pool of ₹ 3.5-4 trillion of completed highway assets. The agency is set to contribute significantly to the government's asset monetization target to raise ₹ 10 trillion in the five years through 2030. Apart from InvITs, ToT is expected to remain the mainstay of monetisation in FY26. Though only one bundle of ToT worth ₹ 6,661 crore was monetised in FY25, NHAI, with a mix of small and large road bundles, is expected to get a better response in FY26. Already, under its monetisation strategy, NHAI has said it will offer three ToT bundles per quarter, including one smaller ( ₹ 2,000 crore), one medium ( ₹ 5,000 crore), and one large ( ₹ 9,000 crore) bundle. Earlier, only two bundles per quarter were targeted. Also, separate and additional InvIT phases would be launched during the year, while it would also mobilise funds by securitising future revenues from its ongoing and upcoming greenfield access-controlled highways and expressways. NHAI set up its InvIT in 2014 and owns a 16% stake. Other investors inNHIT includeCanada Pension Plan Investment Board (CPPIB) and Ontario Teachers' Pension Plan (OTPP). AnInvIT is a pooled investment vehicle that allows investors to get exposure to income-yielding assets such as toll roads and power plants. To safeguard investors' interest, the Securities and Exchange Board of India mandated InvITs to invest at least 80% of their total assets in completed infrastructure projects that are capable of generating income. The remaining 20% can be invested in under-construction projects. The trust also needs to distribute at least 90% of its income to the unit-holders as dividends. There are about two dozen InvITs in the country. Some of these are Cube Highways Trust, India Infrastructure Trust, IRB Infrastructure Trust and IndInfravit Trust. Most of these either directly participate in auctions of ToT projects that are open to all, including developers, InvITs and fund houses, or get projects that are transferred by their parent highway development companies. There is no separate window for InvITs to acquire completed road projects.
Time of India
11-06-2025
- Business
- Time of India
Kerala government considers turnover tax exemption for breweries
T'puram: In what could mark a significant policy extension in favour of liquor manufacturers in Kerala, the state govt is now actively considering granting turnover tax (ToT) exemption to breweries, two-and-a-half years after a similar relief was extended to distilleries. Tired of too many ads? go ad free now The file currently under review pertains to KALS Breweries Pvt Ltd — a brewery operating in the state — and has reached the ministerial level, signalling that a final decision is imminent. The move follows the state's decision in Dec 2022 to waive the 5% ToT on sales by distilleries to the Kerala State Beverages (Manufacturing and Marketing) Corporation. At that time, the govt cited public interest while invoking powers under Section 10 of the Kerala General Sales Tax Act, 1963. However, to cushion the revenue loss, the govt increased the sales tax on liquor by 4%. It resulted in a modest hike in Indian made foreign liquor's retail price, with most brands becoming costlier by Rs 10 to Rs 20. Now, a similar outcome appears likely with breweries as well. If the govt proceeds with granting ToT exemption to KALS Breweries, it could again result in a minor upward revision of retail liquor prices, unless alternative tax adjustments are introduced. While no official confirmation has been made, multiple layers of administrative action within the govt indicate that the matter is being taken forward with serious intent. An official digital record from the state's e-office system confirms the status of the request. A file titled "Representation from KALS Breweries Pvt Ltd for exemption of turnover tax" was formally opened on Nov 22, 2024. The file's internal movement offers a glimpse into how tax exemption proposals are examined and escalated within the state's bureaucratic framework. Tired of too many ads? go ad free now On June 6, 2025, the joint secretary concerned in the taxes department made the file's two successive transfers to additional chief secretary (taxes) K R Jyothilal. The very next day, Jyothilal forwarded it to finance minister K N Balagopal, who, on the same day, passed it on to his additional private secretary. This sequence makes it clear that the proposal has reached the top political office in charge of taxation and fiscal matters in the state, in a relatively top speed for the movement of a govt file on policy matter. The 2022 exemption for distilleries was issued through govt order on Dec 1, 2022. The explanatory note attached to the notification described the move as being in the public interest, offering a policy rationale that the govt is likely to repeat while extending the same exemption to breweries. What makes this latest development particularly significant is its potential to establish a lasting policy precedent. If KALS Breweries is granted exemption from ToT, it will logically follow that any new brewery sanctioned in the state in future will also be entitled to the same benefit. This becomes crucial given the politically sensitive nature of licensing new breweries in the state. The idea of relaxing taxes for alcohol manufacturers has traditionally drawn criticism from various quarters, including public health advocates and opposition parties. However, from the govt's point of view, ToT exemptions serve as a fiscal tool that simplifies the taxation structure and encourages investment in the manufacturing sector. Given the precedent from 2022, when the removal of the turnover tax for distilleries was balanced with an increase in sales tax, a similar route may be adopted again. If so, consumers can expect a small increase in the price of beer and other brewed liquor brands in the near future.
Mint
09-06-2025
- Automotive
- Mint
NHAI outlines its asset monetization strategy for the first time
New Delhi: The National Highway Authority of India has for the first time outlined its strategy to monetize assets to unlock value and increase public-private participation for developing infrastructure in India. The state-run agency's 'Asset Monetization Strategy for the Road Sector' provides a blueprint to mobilize capital through toll-operate-transfer (ToT) model, infrastructure investment trusts (InvITs), and securitization. The strategy is anchored in three core pillars: value maximization of government road assets; transparency of processes and dissemination of investor-relevant information; and market development through deepening the investor base as well as promoting stakeholder engagement. As one of the early movers towards alternative financing mechanisms, the NHAI's strategy aligns with the Government of India's asset monetization plan for 2025-30. Instruments like ToT, InvITs and securitisation have helped the state-run agency to raise over ₹ 1.4 trillion so far across more than 6,100 km of national highways under the National Monetization Pipeline. 'The unique approach that NHAI has adopted towards asset monetization not only ensures financial sustainability but also opens opportunities for the private sector, leverages advanced technologies, enhances quality and longevity of our road assets,' said NHAI chairman Santosh Kumar Yadav. 'The successful implementation of this strategy will provide NHAI with a steady stream of financing, reducing our reliance on traditional funding sources.' N.R.V.V.M.K. Rajendra Kumar, member finance, NHAI said, 'This document outlines a strategic framework to maximize the benefits of asset monetization. It emphasizes the need for a structured approach to identify and value assets, ensuring transparency and fostering investor confidence.' According to ratings agency Crisil Ltd, for NHAI to reach its previous highs of 6,000 km per year of awards and execution, a substantial rise in private capital through acceleration in asset monetisation will be essential. 'We expect the share of monetisation in NHAI's sources of funds to grow to 18% in this fiscal and next, compared with 14% in the preceding two fiscals,' Crisil said in its report on infrastructure. 'What lends confidence here is a monetisable asset base worth ₹ 3.5-4 lakh crore.'
Time of India
09-06-2025
- Health
- Time of India
How organic farming techniques helped a farmer in Bihar decrease production costs
Shri Akhilesh Kumar, a progressive farmer from Mathnahamal Village in Vaishali district, Bihar, has steadily transitioned from conventional to organic farming with support from Patanjali Bio Research Institute (PBRI). Tired of too many ads? go ad free now Owning 12 acres of irrigated land, he cultivates a range of crops throughout the year. In the Kharif season, he grows paddy, bajra, and wheat, while in the Rabi season, his focus shifts to wheat, potatoes, pulses, mustard, onions, and vegetables. Akhilesh's exposure to organic practices began in November 2018 when he attended a Training of Trainers (ToT) program on organic farming organized by PBRI at Patha. The program provided him with foundational knowledge on preparing organic manure and using natural methods for crop protection. Post-training, he took the initiative to train 50 other farmers in his village, serving as a local resource person for organic agriculture. Transition to organic methods As mentioned in the book 'Patanjali Organic Kranti' by Acharya Balkrishna, one of his key efforts was cultivating chemical-free onions on a 5000 square meter plot. This initiative began in February, and harvesting took place between May and June. To support crop health and reduce chemical usage, Akhilesh applied panchagavya, a traditional organic mixture prepared at home using ingredients like cow dung, cow urine, desi ghee, curd, jaggery (gur), and water. He sprayed it twice: once 15 days after transplanting and again 45 days later. After using panchagavya, he observed improved plant growth and healthier overall crop conditions. To replace synthetic pesticides and insecticides, he prepared and used dashparni, a fermented solution made from 10 local or wild plants combined with gaumutra (cow urine). This mixture acted as a natural pest and disease repellent and helped lower his input costs. Tired of too many ads? go ad free now Production and cost savings The shift to organic inputs allowed Akhilesh to reduce his expenditure on commercial fertilizers and pesticides. By using panchagavya and dashparni, which he prepared himself at home, he reported overall savings of around ₹1,720 compared to chemical-based farming, even with relatively lower production. These savings became especially significant considering the lower investment and chemical-free nature of the produce. He harvested a total of 1000 kilograms of onions from his organic plot and marketed them at Vaishali Sabji Mandi and Muzaffarpur Bazaar Samiti. The onions sold for ₹45 per kilogram, which was ₹5 higher than the previous price of ₹40 per kilogram for chemically grown onions. The price gain and input cost reduction combined to make organic onion farming economically viable for him. Marketing efforts For better price realization, Akhilesh focused on packaging and direct sales. He sold his onions in small polybag packets, making them more appealing and accessible in the market. This marketing strategy resulted in increased demand from local traders, who also showed interest in sourcing more organic onions from him. His experiment with packaging and direct sales not only fetched a better price but also provided a model for others to consider, especially those skeptical about the commercial potential of organic farming. Impact and outlook The response to his efforts has been positive. Farmers from his village and nearby areas have taken note of his results. Akhilesh's use of locally prepared organic inputs, moderate yield, and better price realization has inspired neighboring farmers to consider similar practices in their own fields. Encouraged by the outcome, Akhilesh is planning to scale up his organic onion cultivation in the coming seasons. He believes that with consistent effort and community involvement, large-scale organic farming of onions and vegetables could become profitable in his region.
Hans India
05-06-2025
- Health
- Hans India
Natural farming only way forward to restore planetary health
Vijayawada: 'This is a historic day and game-changing moment where the entire agriculture and horticulture department and its leadership have come together to champion a shift towards practices that enhance farmer prosperity,' stated B Rajasekhar, Special Chief Secretary of the Agriculture and Cooperation Department. He was addressing the inaugural session of a three-day district-level Training of Trainers (ToT) programme, which commenced Wednesday at all district headquarters. This programme aims at giving orientation to over 10,000 Rythu Seva Kendra functionaries across the State in June on the promotion of Andhra Pradesh Community-Managed Natural Farming (APCNF). Rajasekhar emphasised that natural farming is a turning point, offering concrete solutions to major agrarian challenges. During his virtual session from the State headquarters, Rajasekhar urged departmental officials attending the training to promote Pre-Monsoon Dry Sowing (PMDS) in non-APCNF villages to ensure 365 days of green cover on farmland. He highlighted successful natural farming practitioners like Srinivasulu from Guntur district and Hema Latha from NTR district, who are actively exploring the science behind the practice. T Vijay Kumar, Executive Vice-Chairperson of Rythu Sadhikara Samstha (RySS), speaking virtually at the ToT launch, stressed the critical juncture faced by food consumers due to declining nutritional value, increasing pest resistance, rising carbon emissions, and economically unviable farming. He asserted, 'Natural Farming is not just a choice anymore; it is a necessity to restore the health of the planet and the dignity of the farmer.' This district-level ToT is a follow-up to the State-level programME and aims to orient all Village Agriculture Assistants (VAAs) and Village Horticulture Assistants (VHAs) statewide. Special arrangements were made at all district headquarters for smooth participation in virtual sessions with Heads of Departments. The training combines classroom learning with field-level exposure, providing grass-roots departmental functionaries with a comprehensive understanding of natural farming principles. Dilli Rao, Director of Agriculture; Dr K Sreenivasulu, Director of Horticulture; Dr. D.V. Raidu, Advisor to RySS; and B. Rama Rao, Chief Executive Officer of RySS, also joined the virtual call and addressed the gathering.
