The National Highways Authority of India (NHAI) has mobilised around Rs 183.20 billion from the sale of 11 operating road assets. One of the main investors is now the Employee Provident Fund Organisation (EPFO).
This was the fourth and the largest monetisation round via the National Highways Infrastructure Trust (NHIT). Under this round, around 11 road stretches spanning 844 km were monetised. Further, NHIT raised Rs 100.4 billion in loans from domestic lenders and Rs 83.4 billion in unit capital from both local and foreign investors. Moreover, the EPFO invested Rs 20.35 billion, acquiring 24.4 per cent of the available units. CPP Investments and Ontario Limited have each acquired 25 per cent.
The remaining units were taken by domestic pension and provident funds, such as Larsen and Toubro Pension Fund (PF), Rajasthan Rajya Vidyut Karamchari PF, and Indian Oil Corporation PF; insurance firms such as Axis Max Life Insurance; banks and financial institutions, such as National Bank for Financing Infrastructure and Development (NaBFID), Axis Bank, and IndusInd Bank; and mutual funds, such as Nippon India, Baroda BNP Paribas, Nuvama, and White Oak Capital. With this, the cumulative value mobilised via InvIT stands at Rs 460 billion.
The national highway stretches acquired include Anakapalle – Narsannapeta, Gundugolanu – Kovvuru and Chittoor – Mallavaram stretches in Andhra Pradesh, Bareilly – Sitapur and Muzaffarnagar – Haridwar stretches in Uttar Pradesh/ Uttarakhand, Gandhidham – Mundra stretch in Gujarat and Raipur – Bilaspur stretch in Chhattisgarh.
After the current phase is over, NHIT will have a diverse portfolio of 26 toll roads (41 toll plazas) that are currently in operation, totalling 2,345 km and spread across 12 states with concession durations ranging from 20 to 30 years.