The National Highways Authority of India (NHAI) announced on Monday its plan to launch a public Infrastructure Investment Trust (InvIT), aiming to expand its investor base and provide retail investors with access to infrastructure assets. This move marks a significant shift from NHAI’s earlier strategy of focusing on private InvITs, through which it had already monetised over 2,300 kilometres of highways.
InvITs, or Infrastructure Investment Trusts, are pooled investment vehicles that raise capital by issuing units to investors. These funds are then used to invest in infrastructure projects, with investors receiving returns from the cash flows generated by the assets. In India, InvITs are regulated by the Securities and Exchange Board of India (SEBI) and offer benefits like predictable returns, diversification, liquidity, and tax advantages.
NHAI revealed that its public InvIT strategy would complement its existing monetisation model, specifically the Toll-Operate-Transfer (ToT) model. Under this structure, NHAI plans to offer three ToT bundles each quarter—small (Rs. 2,000 crore), medium (Rs. 5,000 crore), and large (Rs. 9,000 crore)—in addition to launching one or two InvIT phases annually. These bundles will be adjusted based on prevailing market conditions.
The ToT model allows concessionaires to acquire toll collection rights by paying a lump sum to NHAI at the start of the concession period. In return, the concessionaire is responsible for the operation and maintenance (O&M) of the asset throughout the tenure.
Since 2017–2018, NHAI has successfully awarded 11 ToT bundles and three InvIT phases, cumulatively generating approximately Rs. 75,000 crore. Looking ahead, the authority plans to conduct targeted outreach programmes to attract high-quality institutional investors and infrastructure management experts across different regions and investor profiles.
With this public InvIT, NHAI aims to create an inclusive investment platform that enables wider public participation in India’s infrastructure growth story, while simultaneously unlocking value from completed highway assets.
NHAI
The National Highways Authority of India (NHAI) is an autonomous agency under the Ministry of Road Transport and Highways, responsible for the development, maintenance, and management of India’s national highway network. Established in 1995, NHAI plays a key role in implementing major highway projects, including the Bharatmala and Golden Quadrilateral programmes.
