Highway Infrastructure Trust (HIT), backed by KKR’s Singapore-based arm, has emerged victorious in securing two highway stretches from the National Highways Authority of India (NHAI). The deal, which amounts to ₹6,661 crore, involves the monetisation of 251 kilometres along the Hyderabad-Nagpur corridor in Telangana through the Toll Operate Transfer (ToT) model.
This latest acquisition highlights the growing interest of private players in India’s highway network, particularly as the government seeks to enhance road infrastructure efficiency. The awarded ToT Bundle 16 comes with a 20-year concession period, during which the concessionaire is mandated to maintain and operate the highways while collecting user fees as stipulated under the National Highway Fee Rules. This mechanism is expected to generate sustained revenue while ensuring the upkeep of critical transportation links. NHAI Chairman noted the success of the ToT model, which achieved a remarkable 100% success rate in FY24. He expressed confidence in the model’s ability to unlock the true potential of the national highway network, underscoring its contribution to India’s overall infrastructure development.
For the fiscal year 2023-24, NHAI has successfully awarded four ToT bundles, collectively valued at ₹15,968 crore, surpassing the initial monetisation target of ₹10,000 crore. This surge in asset monetisation aligns with the government’s broader National Monetization Plan, which aims to enhance public asset utilisation for economic growth. The total asset monetisation program has now exceeded ₹1 trillion, comprising ₹48,995 crore through ToT, ₹25,900 crore via Infrastructure Investment Trusts (InvITs), and ₹42,000 crore through securitisation. Looking ahead, NHAI aims to raise ₹54,000 crore from the monetisation of operational roads this year, an increase from the ₹40,227 crore achieved in the previous fiscal year. The authority has identified 33 highway stretches spanning 2,741 kilometres for monetisation, with projections indicating that between ₹15,000 crore to ₹20,000 crore could be raised through NHAI monetisation efforts alone.
As the highway sector continues to attract investment, the emphasis on sustainability remains crucial. The monetisation drive not only enhances financial efficiency but also fosters an environment where private entities can innovate in maintaining and operating vital infrastructure. This collaborative approach is vital for achieving long-term sustainability in India’s transportation network, balancing economic growth with ecological responsibility.
