The National Highways Authority of India (NHAI) has designated nine highway corridors, encompassing over 550 km across Maharashtra, Odisha, Andhra Pradesh, and West Bengal, for monetisation via the Infrastructure Investment Trust (InvIT) route in the current financial year. This marks the fifth InvIT cycle since the model’s inception in 2021–22, showing a strategic shift from Toll-Operate-Transfer (ToT) mechanisms toward sustainable infrastructure financing.
Under the National Highways Infrastructure Trust (NHIT), these identified stretches align with the broader Asset Monetisation Strategy, which envisions two InvIT rounds annually—an acceleration from the traditional one-round model. The early initiation of this cycle aims to preserve capacity for a subsequent round later in the year, reaffirming NHAI’s commitment to meeting ambitious financial targets. In 2024–25, the NHIT acquired 821 km of highways from NHAI for ₹17,738 crore upfront. Industry calculations suggest that this current monetisation phase is anticipated to yield ₹12,500 crore. Since launching InvIT-based monetisation, NHAI has cumulatively amassed ₹43,638 crore through the divestment of 2,345 km of road assets.
Speaking on evolving policy trends, Minister of Road Transport and Highways noted that InvITs would increasingly assume the central role in infrastructure monetisation, replacing the ToT model. While two ToT highway bundles remain undetermined from last year, bidding continues for two additional bundles, underscoring a gradual transition in monetisation strategy. The strategic pivot towards InvITs aims to establish a more resilient funding mechanism, supporting the National Monetisation Pipeline’s (NMP) second phase, which targets ₹10 lakh crore in asset monetisation between 2025 and 2030. Highways alone are expected to contribute nearly ₹3.5 lakh crore, translating into a need for annual highway asset monetisation of roughly ₹50,000 crore over five years.
Industry analysts are closely monitoring how NHAI’s reduced asset lot size this round will impact valuations and investor interest. Smaller bundles are often viewed as more accessible to a wider pool of infrastructure investors, including pension funds and foreign sovereign wealth entities. Early monetisation may improve clarity and momentum for a potential second InvIT loop later in FY25. Experts note that InvIT enables more equitable infrastructure investment: retail participation in planned public InvITs will allow individuals to co‑invest in transport assets previously reserved for institutional investors. Such democratization supports a more inclusive financial ecosystem.
However, challenges remain. Some analysts caution that excessive reliance on monetisation can strain highway maintenance funding unless revenue-sharing frameworks are carefully structured. Furthermore, asset valuations must remain attractive while maintaining the operational integrity of highway corridors. From a governance perspective, the shift underscores a nuanced approach: commercial disciplines in asset management combined with public oversight. Profits generated from InvITs could be reinvested into network expansion, greener corridors, and climate-resilient infrastructure upgrades—supporting the editorial agenda of sustainable and zero‑carbon urban growth.
For commuters and local economies, improved fiscal flows may translate into accelerated upgrades—such as service lanes, shelters, and smart traffic systems—particularly on monetised stretches. But ensuring passenger equity remains critical: macadam fees, maintenance quality, and service standards must not disadvantage vulnerable users. As InvIT emerges as the dominant financing model for highway monetisation, its success lies in balancing revenue goals with long‑term asset stewardship and public value. NHAI’s current launch sets the benchmark; a second round this financial year could reinforce India’s commitment to private‑sector‑driven, environmentally responsible infrastructure development.
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NHAI Identifies Nine Highway Stretches Worth 550 km for InvIT Monetisation
