NHAI Mulls Public InvIT to Attract Retail Investors, Expand Asset Monetisation Base

The National Highways Authority of India (NHAI) is exploring the launch of a public infrastructure investment trust (InvIT) to open up its toll-yielding road assets to retail investors, aiming to diversify its investor base and accelerate asset monetisation efforts.

According to its latest Asset Monetisation Strategy Report, NHAI has already monetised over 2,300 km of highways through a private InvIT structure. Now, it is considering a public InvIT to bring in retail participation and deepen market competition. “This move is expected to mitigate the risks of a limited investor pool while allowing Indian citizens to own a share of the country’s infrastructure growth,” the report stated.

Union Minister for Road Transport and Highways Nitin Gadkari has long advocated for citizen participation in infrastructure investment, calling it a way for the public to directly benefit from India’s rapid highway development. However, officials admit that stringent regulations and complex processes have slowed progress toward a public InvIT rollout.

InvITs are among the three main tools NHAI uses for highway monetisation. These trusts manage revenue-generating highway assets, with returns distributed among unit holders based on toll collections.

So far, NHAI has raised ₹1.4 trillion through monetisation, significantly contributing to the first National Monetisation Pipeline (NMP). It has already achieved 71% of its road sector target under the NMP (₹1.15 trillion out of ₹1.6 trillion for FY22 to FY25). Looking ahead, NHAI is expected to take on the highest target among government departments in the second NMP phase, with a goal of monetising ₹3.5 trillion worth of highways by FY30.

Meanwhile, the authority is also working on making its valuation process more transparent. After facing backlash in 2020 for withholding the Initial Estimated Concession Value (IECV) in TOT bids, NHAI began disclosing underlying assumptions without revealing the final figure. Now, it plans to refine this model for greater clarity and bidder confidence.