NHAI set to broaden investor access with public infrastructure investment trust
In a move aimed at diversifying its investor base and opening up infrastructure investments to a wider audience, the National Highways Authority of India (NHAI) announced plans on Monday to launch a public Infrastructure Investment Trust (InvIT). This public offering will, for the first time, provide retail investors a chance to invest directly in India’s expanding highway infrastructure.
The authority has previously monetised over 2,300 km of completed highway stretches through a private InvIT, raising substantial capital from institutional players. With the proposed public InvIT, NHAI intends to complement this by extending opportunities to individual investors seeking stable, long-term returns from infrastructure assets.
As part of its monetisation strategy, NHAI plans to offer three Toll-Operate-Transfer (ToT) bundles each quarter — categorized into small (₹2,000 crore), medium (₹5,000 crore), and large (₹9,000 crore) packages. Additionally, one to two InvIT phases are expected to be conducted annually, depending on market conditions and investor demand. The authority also stated it would retain the flexibility to adjust bundle sizes based on evolving market scenarios.
To attract a varied mix of investors, including those with expertise in infrastructure management, NHAI is preparing targeted outreach initiatives across different regions and investor profiles.
Since the introduction of the ToT model in 2017-18, NHAI has successfully awarded 11 ToT bundles and completed three InvIT phases, collectively raising around ₹75,000 crore. Under the ToT framework, private players pay an upfront amount for toll collection rights while maintaining and operating the assets for a fixed concession period.
First introduced in India in 2014, InvITs are regulated investment vehicles that pool funds from investors and provide them with regular income generated by underlying infrastructure assets. They offer benefits such as predictable cash flows, liquidity, portfolio diversification, and tax efficiency.
By taking the InvIT route public, NHAI hopes to deepen market participation in India’s road infrastructure sector and broaden financing avenues for its ambitious national highway network expansion.
