NHAI Plans ₹40,000 Crore Asset Monetisation Push via InvITs and TOT Bundles

The National Highways Authority of India (NHAI) is targeting to raise ₹40,000 crore through asset monetization by the end of the fiscal year 2025-26. To achieve this, NHAI has lined up significant offerings, including the fifth round of its infrastructure investment trust (InvIT-5) and a new public InvIT. InvIT-5 is expected to generate ₹8,000-9,000 crore, while the public InvIT could fetch ₹10,000-11,000 crore. Additionally, six Toll-Operate-Transfer (TOT) bundles are planned for investors. The financial bids for TOT 17 were opened recently, with IRB Infrastructure Developers being the highest bidder at ₹9,270 crore. Bids are currently being invited for TOT 18, 19, 20, 21, and 22.

NHAI had previously unveiled its asset monetization strategy document in June, aiming to ensure a steady stream of financing and reduce dependence on traditional funding methods. The authority has shortlisted 24 road assets, totaling 1,472 km, for monetization in 2025-26. In the previous fiscal year, NHAI had successfully raised ₹28,724 crore through similar monetization efforts.

The monetization process had experienced a slow start earlier due to uncertainties surrounding toll revenues and their sharing between concessionaires and the government, particularly after the introduction of annual toll passes. With these issues now resolved, NHAI is keen to regain momentum.

Impact This aggressive monetization plan is critical for sustaining India's infrastructure development and attracting private capital. It will provide NHAI with substantial liquidity to continue expanding the national highway network and improve connectivity. Investors may find opportunities in the upcoming InvITs and TOT projects, potentially benefiting companies like IRB Infrastructure Developers. The boost in infrastructure spending is generally positive for the overall Indian economy. Rating: 7/10.

Difficult Terms: Asset Monetisation: The process of converting government-owned income-generating assets into cash by selling or leasing them to private entities. Infrastructure Investment Trust (InvIT): A collective investment scheme that owns and manages income-generating infrastructure assets, similar to a mutual fund for infrastructure. Toll-Operate-Transfer (TOT): A model where the NHAI awards the operation and toll collection rights of completed highway projects to private players for a predetermined period in exchange for an upfront payment. Financial Bids: Formal offers from potential investors specifying the price or financial terms at which they are willing to acquire or operate assets.