In a significant move for India's infrastructure, Highways Infrastructure Trust (HIT) has secured the highest bid of INR 6,661 crore to acquire two road stretches along the Hyderabad-Nagpur corridor. Backed by KKR's Singapore arm, HIT outperformed competitors like Adani Road Transport and IRB Infrastructure in the National Highways Authority of India's (NHAI) monetization initiative. This project, part of the toll-operate-transfer (ToT) model, is the first of the financial year, contributing to NHAI's ambitious goal of raising INR 54,000 crore from operational roads. With 33 stretches identified for monetization, this effort underscores the increasing investment in India's road network.
Highways Infrastructure Trust (HIT), backed by a Singaporean branch of global investment firm KKR, has emerged as the highest bidder with an offer of INR6,661 crore for the acquisition of two road stretches from the National Highways Authority of India (NHAI). These stretches are being monetized through the toll-operate-transfer (ToT) model. HIT was one of four bidders for the 251 km stretches along the Hyderabad-Nagpur corridor in Telangana, part of ToT Bundle 16, marking the first road monetization of the financial year. Other bidders included Adani Road Transport, IRB Infrastructure, and Cube Highways.
If accepted, these bids would enable the NHAI to achieve over 40% of its monetization target through the ToT model. Bidding for ToT bundles 15, 17, 18, and 19 is still ongoing, with a concession period of 20 years during which concessionaires are responsible for maintaining and operating the road stretches. In return for their upfront payments, concessionaires can collect and retain user fees.
This year, the highway builder aims to raise INR 54,000 crore from the monetization of operational roads, exceeding theINR40,227 crore achieved last year. Of the FY25 target, INR 8,000 crore is expected from project-based financing, while INR 46,000 crore will come from ToT and the National Highways Infra Trust (NHIT).
The highway builder has already identified 33 stretches totalling 2,741 km for monetization this financial year. Out of these, 12 will be offered to NHIT, promoted by NHAI, which is anticipated to generate INR 15,000-20,000 crore. The remaining 21 stretches will be monetized through the ToT model, covering states including Uttar Pradesh, Rajasthan, Maharashtra, Andhra Pradesh, Telangana, Jharkhand, Odisha, Tamil Nadu, and Bihar.
In conclusion, the successful monetization of these highways is expected to significantly boost NHAI's revenue and infrastructure development efforts, reflecting the growing interest in public-private partnerships within India's transportation sector.
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