NHIT Gears Up For Record Rs 20,000 Crore Fundraise To Bolster India’s Highway Network

The National Highways Infrastructure Trust (NHIT), backed by the National Highways Authority of India (NHAI), is set to embark on its biggest-ever fundraise, aiming to secure over Rs 20,000 crore from domestic and international investors in the coming weeks, reported the Financial Express.

The funds will be used to acquire 11 operational road assets, marking the fourth and largest round of fundraising by the trust.

For the first time, the Employees’ Provident Fund Organisation (EPFO) will participate as an equity investor, a move that signals growing institutional confidence in Infrastructure Investment Trusts (InvITs).

Of the total target, Rs 10,000 crore is expected to be raised via fresh equity issuance, matched by an equivalent debt component.

According to sources quoted by the quoted the Financial Express , "some part would come as new subscriptions from existing unitholders in proportion of their current holdings," though the final amount will be determined by the book-building process.

Currently, Canadian investors Ontario Teachers’ Pension Plan and CPP Investment Board Private Holdings each hold 25 per cent of the trust, while NHAI (15.48 per cent) and SBI AMC (9.34 per cent) are also key stakeholders.

With the upcoming asset acquisitions, new investors, including EPFO, are expected to bolster NHIT’s capital base.

The NHIT model involves the trust operating and maintaining highway projects for a fixed concession period, collecting toll revenues, and ensuring steady returns for investors.

So far, Rs 25,899 crore has been raised through three previous InvIT rounds, leading to the acquisition of 15 road stretches spanning 1,525 km across nine states, including Uttar Pradesh, West Bengal, Assam, Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, and Telangana.

The latest acquisition will include highway assets in Karnataka, Andhra Pradesh, Uttar Pradesh, Uttarakhand, and Chhattisgarh.

In FY24, NHIT raised Rs 15,700 crore by monetising 889 km of highways through InvIT. For FY25, NHAI has set an ambitious target of Rs 54,000 crore through InvITs, TOTs, and project-based financing, its highest-ever monetisation goal.

Already, Rs 8,353 crore has been raised through two TOT transactions this year.

NHAI has identified 34 highway stretches spanning 2,822 km for monetisation in FY25, reinforcing its commitment to strengthening India’s road infrastructure while reducing fiscal strain.

Despite these efforts, the budgetary allocation for NHAI has remained flat at Rs 1.7 lakh crore, reflecting a negative real-term growth.

Similarly, the Ministry of Road Transport and Highways has maintained its capital expenditure allocation at Rs 2.72 lakh crore for FY26, underscoring the critical role of private investments in the sector’s expansion.