HomeLatestNew Delhi Government Plans Monetisation of Nine Highway Assets Across Four States

New Delhi Government Plans Monetisation of Nine Highway Assets Across Four States

The National Highways Authority of India (NHAI) has earmarked nine highway stretches, spanning over 550 kilometres in Maharashtra, Odisha, Andhra Pradesh and West Bengal, for monetisation via an Infrastructure Investment Trust (InvIT) this financial year. As the fifth annual InvIT round gains momentum—including a projected revenue of ₹12,500 crore—roadmap adjustments signal a shift from Toll-Operate-Transfer (ToT) to sustainable infrastructure funding ahead of a ₹3.5 lakh crore highway target.

The NHAI is accelerating its assets monetisation strategy by launching a fifth round of highway monetisation through its Infra Investment Trust, targeting nine highway stretches totalling over 550 km across Maharashtra, Odisha, Andhra Pradesh and West Bengal. This effort is unfolding early in the year to pave the way for a possible second round within the same fiscal cycle. The identified stretches will be monetised via the National Highways Infrastructure Trust (NHIT) under the InvIT framework, signalling a continued shift in focus away from the Toll-Operate-Transfer (ToT) model. This move aligns with Ministerial directives aimed at streamlining asset monetisation methodologies . Although concessions for two earlier ToT highway bundles remain pending, NHAI has issued fresh tenders for two additional bundles, underscoring its phased divestment strategy .

The current round is deliberately smaller than the previous one yet still substantial. In fiscal 2024–25, NHIT acquired 821 km of national highways via an upfront payment of ₹17,738 crore—a deal expected to generate approximately ₹12,500 crore in revenue. Historically, NHAI’s InvIT initiatives have sustained momentum—raising ₹43,638 crore through monetisation of 2,345 km to date. A landmark moment for this financing route occurred in March 2025, when NHIT completed its largest InvIT tranche—valued at ₹18,380 crore—bringing total asset monetisation to ₹46,000 crore. This feat was bolstered by record participation, including ₹8,340 crore in equity and ₹10,040 crore in debt, led by marquee investors like the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board.

Importantly, the Employees’ Provident Fund Organisation (EPFO) made its inaugural InvIT investment of ₹2,035 crore during this round—a significant milestone reflecting institutional confidence in infrastructure financing.

The pivot to InvITs is crucial as the NHAI prepares to phase out the ToT framework. Under the second National Monetisation Pipeline (NMP-II)—spanning 2025–30—the highway sector is expected to contribute ₹3.5 lakh crore to the national target of ₹10 lakh crore. To achieve this, the agency must monetise over ₹50,000 crore annually through InvITs alone . The emergence of a public InvIT vehicle, alongside NHIT, signals an intent to democratise infrastructure investment by allowing retail investors direct participation—although NHIT has only raised public debt funding once via bonds in 2022. Financial analysts view these developments as pivotal for India’s investment landscape. InvITs offer predictable revenue streams for private capital, while enabling NHAI to decongest its balance sheet. However, the success of this shift hinges on investor sentiment, regulatory clarity, and sustained highway performance in income and traffic growth.

From an urban planning perspective, the monetisation strategy dovetails with sustainable development goals. Efficient highways under private stewardship can introduce advanced management practices, encourage greener mobility solutions (such as electric vehicle charging), and facilitate gender‑neutral and equitable transit-oriented development. Despite its promise, the model must contend with concerns around toll burden on users, equitable resource allocation, and maintaining service levels. As ToT winds down, NHAI’s strengthened reliance on InvITs places greater emphasis on transparency and return metrics—critical factors for both institutional and future retail investors. In adopting this asset‑based financing model, India is not only advancing infrastructure funding but also reinforcing its commitment to sustainable, inclusive, and long-term urban mobility ecosystems.

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NHAI InvIT Monetisation Targets 550 km Highways

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NHAI selects nine highway stretches totalling 550 km for InvIT monetisation aiming ₹12,500 crore as India shifts from ToT under NMP-II roadmap.

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NHAI InvIT monetisation, highway assets India, NHIT road funding, sustainable infrastructure InvIT, NHAI NMP‑II highways, India green mobility finance

 

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