Infrastructure

NHAI To Unlock Rs 20,000 Crore From Road Assets In 2024-25 Via InvITs

Swarajya Staff

Jun 12, 2024, 12:06 PM | Updated 12:22 PM IST

Under NMP the highways sector has been assigned the target of monetising core assets worth Rs 1.6 trillion by FY25. (X)
Under NMP the highways sector has been assigned the target of monetising core assets worth Rs 1.6 trillion by FY25. (X)

The National Highways Authority of India (NHAI) plans to monetise road assets worth Rs 15,000 crore to 20,000 crore in the current fiscal year through its infrastructure investment trust, the National Highways Infra Trust (NHIT).

The National Highways Infra Trust, a infrastructure investment trust, sponsored by the NHAI, was registered with Securities and Exchange Board of India (SEBI) in October 2020, to support the government’s National Monetisation Pipeline (NMP).

An Infrastructure Investment Trust (InvIT) functions similarly to a mutual fund, allowing individual and institutional investors to invest directly in infrastructure projects and earn a portion of the income as a return. The InvIT operates through a tiered structure where the sponsor establishes the InvIT, which then invests in eligible infrastructure projects either directly or via special purpose vehicles (SPVs).

With three rounds of monetisation completed, NHIT has realised a total value of Rs 26,125 crore.

According to a statement from NHAI, NHIT currently has 190 investors and over 12,000 retail bondholders of its non-convertible debentures. It manages a diversified portfolio of 15 toll roads with a total length of approximately 1,525 kilometres, spanning nine states: Assam, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttar Pradesh, and West Bengal.

Historically, NHIT units were issued at Rs 101 per unit in November 2021 and are listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). As of 31 March 2024, the net asset value of NHIT is Rs 124.75 per unit.


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