The National Highways Infrastructure Trust (NHIT), backed by the National Highways Authority of India (NHAI), is set to raise over Rs 20,000 crore in its largest funding round to date. This capital will be used for the acquisition of 11 operational road assets across Karnataka, Andhra Pradesh, Uttar Pradesh, Uttarakhand, and Chhattisgarh.
For the first time, the Employees’ Provident Fund Organisation (EPFO) will participate as an equity investor. The fundraising will include around Rs 10,000 crore through the issuance of fresh equity units, with a corresponding debt component. A portion of the equity funding will come from existing unit holders subscribing in proportion to their current holdings. The final amount raised will depend on the book-building process.
Currently, major stakeholders in NHIT include Canadian funds Ontario and CPP Investment Board Private Holdings, each holding a 25% stake. Other key investors include NHAI (15.48%) and SBI AMC (9.34%). With this round, additional equity investors are expected to join, with EPFO being the most prominent among them.
The EPFO’s Central Board of Trustees (CBT) had earlier approved guidelines allowing investments in public sector-sponsored infrastructure investment trusts (InvITs) and real estate investment trusts (REITs). The funds raised will be managed under a special purpose vehicle (SPV) structure, allowing NHIT to operate and maintain the acquired road assets. Under this model, NHIT collects toll revenues and distributes returns to investors. The monetization strategy, which also includes the toll-operate-transfer (TOT) model, helps NHAI reduce its debt burden while ensuring long-term revenue generation.
Since its inception, NHIT has raised Rs 25,899 crore across three fundraising rounds, acquiring 15 road stretches spanning 1,525 km across nine states—Uttar Pradesh, West Bengal, Assam, Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, and Telangana. These roads have concession periods ranging from 20 to 30 years.
In the 2023-24 fiscal year, Rs 15,700 crore was raised through the monetization of 889 km of highways via InvIT. For 2024-25, NHAI aims to raise approximately Rs 54,000 crore through asset monetization under the InvIT and TOT models, along with project-based financing. So far, Rs 8,353 crore has been raised this financial year through the TOT model.
NHAI has identified 34 highway stretches, covering a total length of 2,822 km, for monetization in 2024-25. The agency has also repaid around Rs 56,000 crore in debt during the current financial year without raising funds through InvIT. For the upcoming financial year, the budgetary allocation for NHAI stands at Rs 1.7 lakh crore, marking a real-term decline compared to previous years. The overall capital expenditure allocation for the Ministry of Road Transport and Highways remains at Rs 2.72 lakh crore for FY26.
