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The National Highways Authority of India (NHAI) has raised INR 18,320 crore through the monetization of 11 operational highways via the National Highways Infra Trust (NHIT), marking India's largest road sector monetization to date. The 844-km portfolio spans five states, including Andhra Pradesh and Uttar Pradesh. The deal saw INR 8,340 crore in equity and INR 10,040 crore in debt, with EPFO investing INR 2,035 crore in its first-ever InvIT stake. NHIT now manages 26 toll roads totaling 2,345 km. The move highlights rising investor confidence in India's infrastructure and sets a precedent for future public-private funding models.
The National Highways Authority of India (NHAI) has achieved a significant milestone by raising INR 18,320 crore through the monetization of 11 operational road assets via its Infrastructure Investment Trust (InvIT), the National Highways Infra Trust (NHIT). This marks the largest monetization transaction in India's road sector history. Advertisement
In this fourth round of monetization, NHIT secured INR 8,340 crore in unit capital from both domestic and international investors, and an additional INR 10,040 crore in debt from domestic lenders. The 11 highway stretches involved span a combined length of 844 kilometers across several states, including Andhra Pradesh, Uttar Pradesh, Uttarakhand, Gujarat, and Chhattisgarh.
A notable aspect of this transaction is the participation of the Employees' Provident Fund Organisation (EPFO), which invested INR 2,035 crore, acquiring 24.4% of the units on offer. This marks EPFO's inaugural investment in an InvIT. Other key investors include Canadian funds Ontario Limited and CPP Investment Board Private Holdings Inc., each holding 25%, and NHAI itself, which has taken a 15% stake.
The funds raised will be utilized to acquire and manage the specified highway stretches, enhancing their operation and maintenance. With this round, NHIT's portfolio now comprises 26 operating toll roads with an aggregate length of 2,345 kilometers, spread across 12 states, and concession periods ranging between 20 to 30 years.
This successful monetization reflects a growing trend in India's infrastructure sector, where public-private partnerships are increasingly leveraged to fund and manage large-scale projects. For instance, the recent monetization of the PowerGrid Infrastructure Investment Trust (PGInvIT) raised approximately INR 7,735 crore, indicating robust investor interest in infrastructure assets.
NHAI's record-setting InvIT monetization not only underscores the confidence of both domestic and international investors in India's infrastructure sector but also sets a precedent for future asset monetization endeavors aimed at bolstering the nation's infrastructure development.
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