The National Highways Authority of India (NHAI) is set to significantly bolster its financial strategy by targeting the monetisation of highway assets worth ₹20,000 crore through the National Highways Infra Trust (NHIT) in the current fiscal year.
This initiative forms a crucial part of the National Monetisation Pipeline (NMP) for 2024-25, as the authority seeks to leverage alternate investment vehicles that are gaining wider acceptance. According to an official statement, NHAI plans to monetise projects valued between ₹15,000 crore and ₹20,000 crore through NHIT this fiscal year. This ambitious target surpasses the ₹15,700 crore raised in the previous financial year, during which NHAI successfully monetised ten highway stretches.
The NHIT, in which NHAI holds a 16% stake, also counts prominent investors such as the Ontario Teachers’ Pension Plan and the Canada Pension Plan Investment Board, each with a 25% stake. Insurance companies and mutual funds hold an additional 9.86% of the units. For the entire year, NHAI aims to generate approximately ₹54,000 crore through the monetisation of functional road assets. This total includes revenue from both Infrastructure Investment Trust (InVIT) and Toll Operate Transfer (ToT) models, as well as project-based financing. If achieved, this would represent the highest annual revenue from asset monetisation in the authority’s history.
To reach this target, NHAI has identified 33 highway stretches, spanning a total length of 2,741 kilometres, for potential monetisation in FY25. According to ratings agency ICRA, these assets have a combined monetisation potential of ₹53,000 crore to ₹60,000 crore. However, NHAI officials have adopted a conservative target, recognising that not all identified assets may be monetised within the year. NHAI plans to categorise these assets into three bundles: large (exceeding ₹6,000 crore), medium (approximately ₹3,000-₹4,000 crore), and small (₹1,000-₹3,000 crore), tailoring offerings to different investor types.
The recently concluded financial year marked a milestone for NHAI, with the highest revenue since the inception of its monetisation programme, raising a record ₹38,334 crore through ToT, InVIT, and project-based financing.
Under the NMP, the road sector is expected to contribute ₹1.6 lakh crore, or 27%, of the total monetisation target for FY2022-FY2025. By the end of FY24, NHAI, in collaboration with the Ministry of Road Transport and Highways, had realised approximately ₹53,541 crore through ToT and InVIT models. Since the highway monetisation programme began in 2018-19, NHAI has successfully raised ₹1.08 lakh crore through asset recycling. As NHAI continues its strategic efforts to enhance infrastructure financing, the planned monetisation drive for FY25 is poised to further solidify its position as a key player in India’s infrastructure development landscape.
