The National Highways Authority of India (NHAI) aims to raise INR 20,000 crore this financial year through highway monetisation for 2024-25. They plan to monetise 33 highway stretches spanning 2,741 km via InvIT and Toll Operate Transfer, targeting a total of INR 54,000 crore, their highest annual goal. NHAI's past success includes raising INR 38,334 crore last year. Since 2018-19, they have raised INR 1.08 lakh crore through asset recycling, with significant investments from global pension funds and other investors.
The National Highways Authority of India (NHAI) recently announced their intention to raise INR. 20,000 crores in the current financial year through the monetisation of highways across the National Highways Infra Trust (NHIT). This move is followed by the growth in popularity of alternative vehicle sources. A statement from the organisation mentioned that as part of the National Monetisation Pipeline for 2024-25, NHAI plans to monetise projects valued between INR. 15,000 and 20,000 crore through NHIT.
The goal for raising money through InvIT is higher than the INR 15,700 crore achieved last year by monetising 10 highway sections. NHAI holds a 16% stake with NHIT. Other major investors include the Ontario Teachers' Pension Plan and the Canada Pension Plan Investment Board, each holding 25%. Insurance companies and mutual funds own 9.86%.
NHAI plans to raise about INR 54,000 crore this year by monetising operational road assets through InvIT, Toll Operate Transfer, and project-based financing. This will be its highest ever annual target.
For 2024-25, NHAI has selected 33 highway stretches spanning 2,741 km across India for monetisation through ToT and InvIT. ICRA estimates these stretches could raise INR. 53,000-60,000 crore. However, officials are setting a more conservative target because it may not be possible to monetise all the stretches within the year. NHAI currently plans to group together the assets into 3 bundles - large (more than INR. 6,000 crores), medium (between INR. 3,000 - 4,000 crores), and small (between INR. 1,000 - 3,000 crores). According to the rating agency, this would be beneficial for investors.
NHAI saw a record breaking success in the previous fiscal year, with the start of the monetisation program, raising a grand total of INR. 38,334 crores through ToT, InvIT, and infrastructure based funding.
The National Monetisation Pipeline (NMP) expected the road sector to account for INR 1.6 lakh crore or 27% of the total monetisation from FY2022-FY2025. The end of FY24 saw the NHAI and the Ministry of Road Transport and Highways raising about INR 53,541 crore through ToT and InvIT. Since the inception of the highway monetisation program in 2018-19, NHAI has raised INR 1.08 lakh crore by recycling assets.
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