InvITs plays critical role in channelizing financial capital
NHAI has accepted the offer of ‘National Highways Infra Trust’ (NHIT) amounting to Rs.6,220.90 crores towards asset monetization of two National Highway sections spanning over 310.35 km across Maharashtra and Andhra Pradesh http://nhai.gov.in.
The monetized assets include 255.97 km long Amravati–Chikhali–Tarsod section of NH-53 in Maharashtra and 54.38 km long Gundugolanu-Chinna–Avutapalli section of NH-16 in Andhra Pradesh https://www.conexpoconagg.com/.
Commenting on the occasion on 16 Feb, Santosh Kumar Yadav, Chairman, NHAI, said, “InvITs playing a critical role in channelizing financial capital for further development of National Highway network across the country. With this award, total assets monetized through NHIT will be Rs.49,858 crore https://sbi.com.in/.”
NHIT, which is an INVIT sponsored by NHAI has till date raised 4 rounds of capital with marquee investors like CPPIB, OTPP, EPFO, NHAI and SBI group. With more than 700 investors, the current market capitalization of the units of NHIT stand at approximately Rs.28,000 crores. NHIT units are listed both on the National Stock Exchange as well as Bombay Stock Exchange.
Asset monetization has emerged as a strategic tool in NHAI’s efforts to unlock the value of existing assets and attract private sector investment. By leveraging models such as Toll-Operate-Transfer (ToT) and Infrastructure Investment Trusts (InvITs), NHAI has successfully generated funds, which are being reinvested into new National Highway projects. The total National Highways assets monetized during the current financial year is around Rs.28,077 crores. This approach not only ensures financial sustainability but also brings in private sector efficiencies and advanced technologies, enhancing the quality and longevity of National Highway assets, the Ministry of Road Transport and Highways said. fiinews.com
