NHAI Plans Fifth Round Of Highway Monetisation Via InvIT, Eyes Rs 12,500 Crore From 550 Km Asset Sale

The National Highways Authority of India (NHAI) has identified nine highway stretches, spanning over 550 km across Maharashtra, Odisha, Andhra Pradesh and West Bengal, for monetisation through the Infrastructure Investment Trust (InvIT) mechanism in the current financial year, according to a Financial Express report.

These assets will be monetised through the National Highways Infrastructure Trust (NHIT) in what marks the fifth round of InvIT transactions since the model was introduced in 2021-22.

Every year has so far seen a single InvIT issuance, but officials indicate that 2024-25 could witness two rounds. The Asset Monetisation Strategy document does talk of having more than one round in InvIT per year.

Union Minister for Road Transport and Highways Nitin Gadkari has previously announced plans to increasingly rely on InvIT while phasing out the Toll Operate Transfer (ToT) model.

With ToT no longer in favour, the NHAI has yet to finalise concessionaires for two highway bundles bid out last financial year, while bids for two more ToT bundles remain open.

The upcoming InvIT round has been sized lower than last year’s. In 2024-25, NHIT acquired 821 km of highways from NHAI with an upfront payment of Rs 17,738 crore. Rough estimates suggest the new round could raise approximately Rs 12,500 crore.

Since its inception, NHAI has garnered Rs 43,638 crore by monetising 2,345 km of highways through InvITs.

Apart from the private NHIT, a proposal is under consideration to launch a public InvIT, which would allow retail investors to participate through equity units.

If ToT is discontinued entirely, InvIT will remain the sole monetisation route for achieving the government’s ambitious targets under the second National Monetisation Pipeline.

It is projected to mobilise Rs 10 lakh crore over five years from 2025, with highways expected to contribute Rs 3.5 lakh crore. This would necessitate annual highway monetisations exceeding Rs 50,000 crore.

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