India’s road asset monetisation plan for the ongoing fiscal year is set to take a hit with investors turning wary following the Covid-19 outbreak. The national highways building authority has extended the fourth round of auction to monetise operational highways to April, as investors adopt a wait-and-watch mode before deciding on long-term investments.
The National Highways Authority of India (NHAI) had invited bids for its fourth bundle of toll-operate-transfer (TOT) auction in October 2019. The initial plan was to raise at least ₹4,200 crore, but the floor price was eventually brought down to around ₹2,200 crore.
The decision to postpone the auction comes amid the coronavirus outbreak, which has now spread to many countries, causing global uncertainty.