NHAI routes 80% of FY monetisation pipeline through its sponsored InvITs

Key facts

• The National Highways Authority of India (NHAI) has allocated nearly 80% of this financial year's monetisation pipeline to the two Infrastructure Investment Trusts (InvITs) it sponsors.
• Of 17 operational highway stretches spanning 1,692 km earmarked for monetisation via ToT and InvIT structures this financial year, NHAI will route 1,360 km through the InvIT platform.
• In July, NHAI completed its first Toll-Operate-Transfer (ToT) transaction of the financial year, monetising 184.5 km of highways in Tamil Nadu under ToT Bundle 19 for Rs 2,259 crore.
• Bidding is open for ToT Bundles 20, 21 and 22 as NHAI targets Rs 30,000 crore in asset monetisation this year.
• InvIT monetisation proceeds are used exclusively for debt repayment, and NHAI plans to reduce its outstanding debt, now below Rs 2 lakh crore, from a peak of Rs 3.42 lakh crore at the end of 2022-23.
• The public InvIT Raajmarg Infra Investment Trust (RIIT) has been offered 10 stretches totalling 910 km this financial year; in its debut last year, RIIT acquired 260 km of roads for Rs 9,500 crore, with NHAI holding 15% of its units.
• National Highway Infra Trust (NHIT) has been offered 450 km of roads in its sixth acquisition round; last year it acquired highways for Rs 6,550 crore, with NHAI's unit share reduced to 10%.
• RIIT units are open to retail investors, while NHIT's unit holders are Indian and overseas investment funds.
• NHAI has prepared a three-year monetisation strategy to meet the Rs 4.42 lakh crore roads-sector monetisation target over five years; the second National Monetisation Pipeline targets Rs 16.32 lakh crore by 2029-30, with highways accounting for 26%.