Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The National Highways Infrastructure Trust (NHIT), under the National Highways Authority of India (NHAI), intends to raise approximately INR 15,000 crore in the coming months for its fourth round of road asset acquisitions. Funds will be sourced through bank loans, financial institutions, and equity subscriptions, while plans for a public bond issue have been deferred to the next financial year. The NHIT has identified 12 road stretches, totalling over 850 km, for monetisation. This round is set to be the largest InVIT initiative for NHAI, with toll collection rights spanning 20 years. Additionally, NHIT aims to explore zero-coupon bonds to diversify its fundraising.
The National Highways Infrastructure Trust (NHIT), promoted by the National Highways Authority of India (NHAI), plans to raise approximately INR 15,000 crore through a mix of debt and equity within the next two months, according to a senior official. The funds will support the acquisition of road assets in the fourth monetisation round. Advertisement
Debt will be secured from banks and financial institutions, while equity will be raised by subscribing to new units of the infrastructure investment trust. The NHIT, however, has postponed its plans to raise funds through a public bond issue to the next financial year.
Earlier, NHIT had intended to raise INR 3,000 crore from public bonds this year but will now explore this option later. The official noted that NHIT previously raised INR 1,500 crore through a public bond issue in October 2022, which financed the acquisition of assets worth INR 2,850 crore. Since then, no additional public fundraising has occurred.
In addition to term loans and non-convertible debentures, the NHIT plans to issue zero-coupon bonds worth INR 500-1,000 crore. Sponsors and backers, including NHAI, have historically subscribed to fresh equity units in proportion to their holdings. NHAI currently holds 15.48% of NHIT units, with Canadian investors Ontario Limited and CPP Investment Board Private Holdings Inc. each owning 25%. SBI Balanced Advantage Trust is another key shareholder with a 4.8% stake.
The upcoming acquisition round will involve 12 operational road stretches, spanning over 850 km across Andhra Pradesh, Chhattisgarh, Rajasthan, Gujarat, Uttar Pradesh, and Uttarakhand. Half of these stretches are located in Andhra Pradesh, while the rest are distributed among the other states. These assets will be monetised via the InVIT route, allowing NHIT to collect toll revenues for 20 years in exchange for an upfront fee to NHAI. The board of NHIT has also extended Managing Director Suresh Goyal's tenure until the financial year's end to oversee this critical phase.
To date, NHIT has acquired 15 road stretches covering 1,525 km across nine states, with concession periods ranging from 20 to 30 years. The upcoming round, covering 12 stretches, is expected to be the largest InVIT initiative undertaken by NHAI.
In the previous financial year, NHAI's monetisation of 889 km of highways yielded INR 15,700 crore. This year, the authority plans to raise INR 54,000 crore through InVIT, Toll Operate Transfer (ToT), and project-based financing, marking its highest annual target. Of this, INR 6,661 crore has already been secured through the monetisation of two stretches totalling 251 km under the ToT model. For the upcoming year, NHAI has earmarked 33 highway stretches spanning 2,741 km for monetisation across India.
The NHIT's ambitious plans for its fourth asset acquisition round highlight its commitment to expanding India's highway infrastructure through innovative financing mechanisms. With the largest InVIT initiative on the horizon, NHIT aims to optimise toll revenue collection while attracting investments from diverse stakeholders. The focus on equity, debt, and potential zero-coupon bonds reflects a strategic approach to balancing financial sustainability and growth. As NHAI targets its highest-ever annual monetisation, the upcoming initiatives promise to strengthen Indi'?s road network while setting benchmarks for future infrastructure development projects.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
