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Adani Road Transport has become the highest bidder for the National Highways Authority of India's (NHAI) 15th bundle of highway assets under the Toll Operate Transfer (ToT) model, with a bid of INR 1,692 crore. The 124-kilometre stretch, comprising highways in Tamil Nadu, is part of NHAI's broader monetisation strategy, aiming to generate INR 54,000 crore this fiscal year. NHAI has already crossed INR 1 trillion in asset monetisation under the National Monetisation Plan, showcasing its focus on alternate financing strategies amidst debt repayment efforts.
Adani Road Transport has secured the top bid for the latest set of highway assets monetised by the National Highways Authority of India (NHAI) under the Toll Operate Transfer (ToT) model. The company submitted a bid of INR 1,692 crore for ToT bundle 15, which includes a 124-kilometre, four-lane highway spanning Trichy to Madurai and Tovrankurichi in Tamil Nadu. This bid provides the concessionaire the right to collect tolls for 20 years in exchange for an upfront payment. Advertisement
If accepted, this will mark NHAI's second highway monetisation for the current fiscal year. Earlier, the authority completed the monetisation of ToT bundle 16, which included two stretches on the Hyderabad-Nagpur corridor in Telangana, yielding INR 6,661 crore. Other contenders for ToT bundle 15 included IRB Infrastructure, Edelweiss-backed Epic Concesiones, and Prakash Asphalting and Toll Highways (PATH).
In the 2023-24 fiscal year, NHAI awarded four ToT bundles worth INR 15,968 crore, exceeding its annual monetisation target of INR 10,000 crore. This success forms part of NHAI's strategic move to reduce reliance on the debt market, where it has been barred since the 2022-23 fiscal year. By managing its finances efficiently, NHAI reduced its outstanding debt from INR 3.48 trillion at the end of 2022 to INR 3.35 trillion by the close of FY24, repaying approximately INR 56,000 crore.
Under the National Monetisation Plan, NHAI's Total Asset Monetisation Program has surpassed INR 1 trillion. This includes INR 48,995 crore from ToT, INR 25,900 crore via InvIT, and INR 42,000 crore through securitisation. NHAI is also inviting bids for highways under ToT bundles 17, 18, and 19, with plans to monetise 33 highway stretches totalling 2,741 kilometres. Of these, 12 stretches have been allocated to the National Highways Infra Trust (NHIT), which is expected to generate between INR 15,000 and INR 20,000 crore. The remaining 21 stretches will be monetised through the ToT model.
NHAI anticipates raising INR 54,000 crore from the monetisation of operational roads this fiscal year, significantly surpassing the INR 40,227 crore raised last year. This includes INR 8,000 crore from project-based financing and INR 46,000 crore from ToT and NHIT initiatives.
NHAI's strategic efforts to reduce its debt and diversify its financing mechanisms through asset monetisation have proven effective, surpassing past financial targets. By focusing on toll-based revenue models and operational efficiency, the agency is well-positioned to meet its ambitious fiscal targets and contribute to the nation's infrastructure development. The upcoming bids for additional highway bundles highlight the continued momentum in this sector.
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