The National Highways Authority of India (NHAI) has earmarked 1,360 km of highways for monetisation through infrastructure investment trusts (InvITs) in FY27, representing 80 per cent of its annual target. The authority plans to use the proceeds to repay debt as it increasingly moves away from relying only on toll-operate-transfer (ToT) transactions.

NHAI selected 17 operating highway stretches covering 1,692 km for monetisation during the year. Of these, 1,360 km will be offered to two InvITs, while the remaining assets will follow the ToT model, under which a private operator pays an upfront amount for the right to collect tolls over a fixed period.

Raajmarg Infra Investment Trust, NHAI’s public InvIT, has been offered 10 stretches covering about 910 km. NHAI granted principal approval on 22 October for a portfolio spanning 910.76 km across seven states, with Uttar Pradesh accounting for the largest portion at 429.3 km. The trust’s investment manager must still review the assets, and no valuation has been disclosed.

The remaining 450 km will be offered to National Highway Infra Trust, which is conducting its sixth acquisition round. Raajmarg began operations last year by acquiring 260 km of roads for Rs. 95 bn. As a public InvIT, it allows retail investors to subscribe to its units, while the other trust is held by Indian and overseas funds. NHAI owns 15 per cent of Raajmarg’s units and 10 per cent of the other trust’s units.

The ToT route remains active. In July, NHAI completed its first ToT transaction of the year by awarding 184.5 km of highways in Tamil Nadu under Bundle 19 for Rs. 22.59 bn. Bidding remains open for Bundles 20, 21 and 22, while the authority is working towards an annual monetisation target of Rs. 300 bn. NHAI’s debt has declined to below Rs. 200 bn from Rs. 342 bn at the end of FY23.