NHAI Nears ₹30K Cr FY26 Target With ₹28.3K Cr Infra Monetisation

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AuthorSatyam Jha|Published at:
NHAI Nears ₹30K Cr FY26 Target With ₹28.3K Cr Infra Monetisation
Overview

The National Highways Authority of India (NHAI) is rapidly approaching its ₹30,000-crore asset monetisation goal for FY26, having already mobilised ₹28,307 crore. This success stems from strategic Infrastructure Investment Trust (InvIT) and Toll-Operate-Transfer (TOT) transactions, aligning with the government's asset recycling initiative to fund new infrastructure. The strategy unlocks capital for construction and debt reduction, with recent InvIT offerings demonstrating strong investor appetite.

Asset Recycling Powers Infrastructure Growth

The National Highways Authority of India (NHAI) is on the verge of meeting its ambitious ₹30,000-crore asset monetisation target for the fiscal year 2025-26. So far, ₹28,307 crore has been successfully raised through a combination of Infrastructure Investment Trusts (InvITs) and Toll-Operate-Transfer (TOT) transactions. This financial manoeuvre is central to the government's strategy of funding new infrastructure projects without straining public finances. By monetising operational highway assets, NHAI unlocks upfront capital which is then efficiently redeployed into new highway construction, expansion projects, and debt reduction.

InvIT Momentum Drives Capital Mobilisation

A substantial portion of the funds raised originates from InvIT Round-5. This initiative saw NHAI monetise over 310 km of highway stretches, awarding them to NHIT Western Projects Private Limited for a concession value of ₹6,366.98 crore over a 20-year tenure. The recent NHAI InvIT public issue further underscored robust investor confidence, being oversubscribed nearly 14 times. This success secured five road assets across Tamil Nadu, Karnataka, Andhra Pradesh, and Jharkhand, valued at approximately ₹9,500 crore.

TOT Model Contributes Significantly

Alongside the InvIT route, the TOT model has proven instrumental in NHAI's resource mobilisation efforts. The authority recently awarded TOT Bundle-18 for ₹3,087 crore. This deal involves a 74.5-km stretch of NH-16 in Odisha, bagged by IRB Chandibhadra Tollway Private Limited. The private operator will manage and collect tolls for a 20-year concession period, providing NHAI with immediate capital.

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