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Business News/ News / Highway monetization in top gear, raises 15,625 cr via InvIT mode
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Highway monetization in top gear, raises ₹15,625 cr via InvIT mode

10 stretches of highways with the aggregate length of about 890 km monetized

Till now, NHAI has raised ₹10,000-11,000 crore via the InvIT route in two funding rounds earlier in 2022 and 2023. (MINT_PRINT)Premium
Till now, NHAI has raised 10,000-11,000 crore via the InvIT route in two funding rounds earlier in 2022 and 2023. (MINT_PRINT)

The state-owned National Highways Authority of India (NHAI) has raised the highest ever monetization value of 15,624.90 crore through ‘InvIT Round-3’. This was achieved by monetizing 10 stretches of highways with the aggregate length of about 890 km, a statement from the ministry of road transport and highways said.

InvITs, or Infrastructure Investment Trusts, are instruments on the lines of mutual funds that pool money from investors and invest in assets that provide steady cash flows over time. InvITs typically enable infrastructure developers to monetize assets under a single entity (trust structure). The infrastructure investment trust sponsored by the NHAI is named NHIT, which raises money for the highway stretches it gets from NHAI.

The letter of acceptance (LOA) was issued within two hours of the opening of the bid for the third round, the statement added. The third round is the highest so far. Till now, NHAI has raised 10,000-11,000 crore via the InvIT route in two funding rounds earlier in 2022 and 2023.

NHAI is adopting three modes for monetizing, i.e. toll operate transfer (TOT), InvIT and securitization.

During this financial year, NHAI has already awarded four TOT bundles and monetized value worth 15,968 crore. The success rate in TOT mode during FY24 was 100% and LoAs were issued within one day of the financial bid opening, the statement said.

Earlier, under TOT mode, NHAI has successfully monetized six rounds (1,614 km) and realized 26,366 crore and two rounds of InvIT (635 km), realizing 10,200 crore. 

Further, through securitisation, NHAI raised about 37,000 crore till now and likely to raise additional 5,000 crore by the end of FY24.

With this, the NHAI’s total asset monetization programme has crossed 1 trillion ( 42,334 crore through TOT, 26,125 crore through InvIT and 42,000 crore through securitization).

This is in line with the government of India’s vision under the national monetization plan as well as fulfilment of the budgetary announcements, the ministry statement said. 

Roads form a significant portion of the national monetization pipeline. In 2021, the central government had identified national highways and road assets worth 1.6 trillion to be monetized by 2024-25 of the total monetization target for the same period is 6 trillion.

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Published: 08 Feb 2024, 08:00 PM IST
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