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Informist, Monday, Jun. 9, 2025

 

NEW DELHI – The National Highways Authority of India is planning to launch a public infrastructure investment trust, along with the existing private InvIT. The move is aimed at increasing the overall investor base and promoting more private participation and traction in NHAI's asset monetisation program, it said in its 'Asset Monetization Strategy for the Road Sector', released Monday. 

 

"By broadening the pool of potential investors and actively engaging with stakeholders, NHAI will attract diverse investment profiles, ranging from institutional investors to retail participants," it said in the strategy document. "This inclusive approach will not only diversify the sources of capital but also mitigate risks associated with market fluctuations and investor sentiment," it added.

 

As per the Securities and Exchange Board of India, the minimum subscription amount for public InvITs is in the range of INR 10,000 to INR 15,000 and the trading lot is one unit since July 2021, as compared to INR 100,000 and 100 units, respectively. For private InvITs, the minimum subscription amount is INR 250 million and the trading lot is 25,000 units.

 

NHAI has firmed up a tentative list of 24 road assets to be monetised in 2025-26 (Apr-Mar) with a total length of 1,472 kilometres, according to the strategy document. The document focuses particularly on the strategy for asset monetisation through toll-operate-transfer and InvIT models. According to the document, the strategy is for medium term and will be revised after four years in FY29. "The strategy document will reflect government policies and market conditions with flexibility to cater to emergent circumstances," it said.

 

Besides public InvITs, NHAI also plans to offer multiple bundle sizes of assets for monetisation, including three toll-operate-transfer bundles per quarter -- one smaller bundle of INR 20 billion, one medium bundle of INR 50 billion, and one large bundle of INR 90 billion –- and will also conduct one or two InvIT phases each year to cater to a broad spectrum of investors. "NHAI will assess the market conditions in future and adjust the bundles size accordingly," it added.

 

NHAI also plans to create an asset register which will include a list of highway assets that will be attractive to road infrastructure players and private investors looking to participate in NHAI's asset monetisation program. "The asset register will include all technical and financial details needed to determine the monetisation potential of the asset," the strategy report said.

 

NHAI had raised around INR 1.4 trillion through asset monetisation till FY25. According to the report, NHAI monetised 2,564 km of road assets through toll-operate-transfer model to raise INR 490 billion, 2,345 km road assets through InvIT to raise INR 436 billion and raised INR 468 billion by monetising road assets of 1,337 km through special purpose vehicle created for Delhi-Mumbai Expressway.  End

 

Reported by Priyasmita Dutta

Edited by Deepshikha Bhardwaj

 

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