Pushing the pedal on asset recycling

Incentivise states to deliver on the infrastructure agenda

Asset recycling, or monetisation, has emerged as a viable option for raising much-needed monies to fund India’s infrastructure build-out. The concept has gained currency in the last few years, with models such as toll-operate-transfer (TOT), and infrastructure investment trust (InvIT) helping unlock capital in operating infrastructure assets.

For government entities sitting on piles of operating assets (such as roads, power lines and plants, ports, and railway tracks), recycling unlocks capital for both, fresh investments and deleveraging. Operating infrastructure assets with stable cash flows for long tenures attract long-term investors such as pension and insurance funds. And for the economy and the