Key Takeaways
- NHAI launching first public InvIT for highways in February 2025
- Targeting ₹7,000-8,000 crore from public issue by March 2025
- Opening highway investment to retail investors for the first time
- 1,500 km of highways to be added to InvIT over 3-5 years
India is set to revolutionize highway financing with its first public infrastructure investment trust (InvIT) for national highways. The National Highways Authority of India (NHAI) will launch the Raajmarg Infra Investment Trust (RIIT), marking a significant shift toward public participation in infrastructure funding.
Investment Structure and Partners
NHAI has incorporated Raajmarg Infra Investment Managers Pvt Ltd (RIIMPL) as the investment manager for this initiative. The entity represents a collaborative venture with equity participation from major financial institutions including State Bank of India, Punjab National Bank, NaBFID, Axis Bank, Bajaj Finserv Ventures, HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank and Yes Bank.
V. Umashankar, Secretary of MoRTH, confirmed the trust should be operational by early next year with the public issue expected to raise ₹7,000-8,000 crore before March 2025. The first issuance of InvIT units for retail and public investors is scheduled for February.
“The projects to be assigned to the proposed InvIT is being finalized after which fund raising exercise would be done. The idea is also to allow retail investors to subscribe to units of the InvIT, for the very first time,” the secretary said.
Ownership and Governance
NHAI will hold 15% equity as sponsor, while partner banks may subscribe up to 50% equity. Rajendra Kumar, Member (Finance) at NHAI, has been appointed as Managing Director and CEO of the investment manager company.
RIIMPL will establish governance standards fully aligned with SEBI’s InvIT regulations, ensuring transparency and investor protection.
Track Record and Future Plans
NHAI chairman Santosh Kumar Yadav highlighted the authority’s successful monetization track record: “In recent years, we have successfully monetized assets worth ₹48,995 crore through the toll-operate-transfer (TOT) model and raised around ₹43,638 crore across four rounds of private InvITs.”
He added that over the next 3-5 years, approximately 1,500 km of operational national highways will be introduced into the public InvIT, creating substantial public investment opportunities.
Jagannarayan Padmanabhan of Crisil Intelligence noted that infrastructure asset financialization opens doors for retail investors to benefit from stable, annuity-like returns while supporting India’s infrastructure development.
