NHIT Gears Up for Rs 20,000 Crore Fundraise, EPFO Joins to Drive India’s Highway Expansion

The National Highways Infrastructure Trust (NHIT), supported by the National Highways Authority of India (NHAI), has raised its biggest-ever fundraising round, aiming to raise more than Rs 20,000 crore from local and foreign investors. The fourth round of fundraising will be utilized to buy 11 operational highway assets across states such as Karnataka, Andhra Pradesh, Uttar Pradesh, Uttarakhand, and Chhattisgarh, taking NHIT's portfolio to 26 toll roads with a total length of over 2,345 km.

For the inaugural time, Employees' Provident Fund Organisation (EPFO) is becoming an equity investor for the very first time by pledging Rs 2,035 crore, indicating robust institutional faith in infrastructure investment trusts (InvITs). The raise comprises Rs 10,000 crore through fresh equity issuance, matched by an equivalent debt portion, from existing unitholders and fresh investors like pension funds, insurance companies, banks, and mutual funds.

Canadian pension funds Ontario Teachers' Pension Plan and CPP Investment Board also retain major stakes, with 25% each in NHIT. The trust model is to develop and maintain highway projects under long-term concession periods, earn toll revenues, and give stable returns to investors. This method assists NHAI in lessening its financial burden by monetizing assets and re-investing in infrastructure development.

With this fundraise, NHIT aims to support India’s ambitious infrastructure growth, contributing to NHAI’s target of raising Rs 54,000 crore through InvITs, TOTs, and project financing in FY25 — the highest ever monetisation goal by the authority.

Source: Swarajya, Financial Express, Business Standard, Financial Express (Infrastructure)