National Highways Infrastructure Trust to Raise ₹15,000 Crore in Two Months
The National Highways Infrastructure Trust (NHIT), an initiative promoted by the National Highways Authority of India (NHAI), is set to raise ₹15,000 crore within the next two months. This substantial amount will be used to acquire highway assets as part of NHIT’s ongoing effort to monetize road infrastructure through the Infrastructure Investment Trust (InVIT) model. To finance this initiative, NHIT will utilize a mix of debt and equity, with the debt primarily sourced from banks and financial institutions.
Initially, NHIT had planned to raise ₹3,000 crore this year through public bond issues. However, this plan has been postponed, and the public bond issuance will now occur in the next financial year. Despite the delay in public bond issuance, NHIT will continue to raise funds through other financial channels, including term loans, non-convertible debentures, and zero-coupon bonds. The zero-coupon bonds are expected to raise between ₹500 crore and ₹1,000 crore. The equity portion of this fundraising will come from the subscription of fresh units in the trust, with major shareholders contributing in proportion to their existing holdings. NHAI currently holds 15.48% of NHIT’s units, while the Ontario Teachers’ Pension Plan Board and the Canadian Pension Plan Investment Board each hold 25%. These institutional investors are expected to play a significant role in supporting the trust’s expansion.
This round of fundraising will focus on the acquisition of 12 road stretches spanning over 850 km across multiple states, including Andhra Pradesh, Uttar Pradesh, Rajasthan, Gujarat, Uttarakhand, and Chhattisgarh. Under the InVIT model, NHIT will acquire the right to collect toll revenues from these road stretches for 20 years in exchange for an upfront payment. This marks the fourth round of asset acquisitions by NHIT as part of its broader strategy to monetize highway assets and generate revenue for reinvestment into further infrastructure projects. In the previous year, NHAI successfully raised ₹15,700 crore by monetizing 889 km of highways, and for the fiscal year 2023-24, the goal is to raise ₹54,000 crore through various monetization schemes, including the InVIT model and the Toll Operate Transfer (ToT) route. These efforts are part of the government’s larger strategy to finance infrastructure development by leveraging existing assets.
By acquiring toll rights for these roads, NHIT aims to generate significant revenue, which will be reinvested into further infrastructure projects to improve road connectivity across the country. This model not only facilitates funding for infrastructure development but also ensures that road assets continue to contribute to economic growth over the long term. Enhanced road infrastructure will, in turn, improve connectivity, facilitate trade and travel, and support broader economic development.The NHIT’s ongoing efforts in asset monetization represent a key component of India’s push to modernize and expand its infrastructure while managing fiscal constraints. Through this innovative financing approach, NHIT is helping to unlock the potential of India’s vast road network, fostering improved infrastructure and economic outcomes for the country as a whole.
