On 18 March 2026, at the FICCI Infrastructure Conclave, a joint FICCI-Crisil report titled "Paving the Road Ahead" projected that Road Infrastructure Investment Trust (InvIT) assets will more than double to ₹5.45 lakh crore by fiscal 2030.
This expansion reflects growth from the current ₹2.46 lakh crore in fiscal 2025, driven by the launch of the National Monetisation Pipeline (NMP) 2.0, which targets ₹16.7 lakh crore across 12 sectors. Highways remain the "undisputed anchor" of this pipeline, with ₹4.14 lakh crore overall, of which ₹3.35 lakh crore is earmarked or monetisation through InvIT and Toll-Operate-Transfer (TOT) structures.
The report highlights that despite a 42% CAGR in road InvIT AUM over the last four years, penetration remains low at just 4.8% of India's highway network, indicating vast potential for future capital mobilisation.
Key Financial and Operational Milestones
Asset Growth Projection: Road InvIT AUM is set to rise from ₹2.46 lakh crore (2025) to ₹5.45 lakh crore by 2030.
NMP 2.0 Ambition: Targets ₹16.7 lakh crore through fiscal 2030; highways account for the largest sectoral share at ₹4.14 lakh crore.
Monetisation Impact: Asset recycling enabled NHAI to facilitate ₹72,000 crore of debt repayment between fiscals 2023 and 2025.
Market Momentum: Cumulative funds mobilised through InvITs across all sectors grew at a 65% CAGR from fiscal 2020 to 2025.
Cost of Capital Focus: IRFC is targeting a cost of borrowing less than the G-Sec rate (below 8%) to ensure infrastructure is built efficiently.
Investor Returns: Road InvITs offer a unique risk-return profile, with AAA-rated instruments providing Internal Rates of Return (IRR) between 10% and 15%, alongside higher returns observed in some recent cases.
What is the "National Monetisation Pipeline (NMP) 2.0"? NMP 2.0 is a strategic government framework designed to unlock the value of operational brownfield infrastructure assets by transferring their rights to private or institutional investors. It follows NMP 1.0, which successfully mobilised ₹5.3 lakh crore (89% of its target) between 2022 and 2025. NMP 2.0 plays a role in recycling capital into new greenfield projects without adding to the fiscal deficit. The pipeline is supported by the goal of transforming the financial system from being "asset-obese" to "asset-fit" through continuous portfolio-based recycling. For the highway sector, this involves monetising approximately 19,200 km of road assets to generate ₹3.35 lakh crore specifically through InvIT and TOT structures.
What are Infrastructure Investment Trusts? (InvITs) An InvIT is a collective investment vehicle, similar to a mutual fund, that allows individual and institutional investors to pool their money to invest in completed, income-generating infrastructure projects like highways or power transmission lines. These trusts are designed to provide investors with stable, long-term returns—often through internal rates of return (IRR) between 10% and 15%—by distributing the regular income (such as toll collections) directly to unitholders. For developers and the government, InvITs serve as a critical tool for capital recycling, enabling them to monetise existing assets and reinvest the proceeds into new greenfield projects without increasing public debt.
What is Toll-Operate-Transfer (TOT)? The TOT model is an asset monetisation mechanism where the government leases an operational, publicly-funded highway to a private developer or institutional investor for a fixed long-term period, typically around 20 to 30 years. In exchange for a substantial upfront payment to the government, the private partner gains the right to collect and retain toll revenues and assumes the responsibility for the operation and maintenance of the stretch during the lease term. While TOT provides an immediate, one-time cash infusion for the state, it differs from InvITs in that it is a one-off transaction that results in the government exiting the specific asset for the duration of the contract.
Policy Relevance: Modernising India’s Capital Recycling Strategy
Scaling Portfolio-Based Recycling: The shift from one-off TOT transactions to InvIT platforms reflects growth in the government's ability to retain strategic participation while injecting new assets over time.
Internalising Tax Efficiencies: InvITs utilize a pass-through tax structure, which plays a role in distributing income directly to unitholders without taxation at the trust level, making them highly attractive to institutional investors.
Bypassing High Borrowing Costs: By targeting borrowing rates below 8%, institutions like IRFC are supported by the need for "cheap finance" as the most important raw material for infrastructure.
Supporting Retail Participation: The forthcoming public InvIT from NHAI contributes to democratising infrastructure investment, allowing individual investors access to AAA-rated stable returns previously reserved for institutions.
Relevant Question for Policy Stakeholders: In what ways can the Ministry of Road Transport and Highways utilise the NMP 2.0 framework to mechanically track the "debt-to-asset" recycling ratio across the 12 targeted sectors?
Follow the Full Report Here: FICCI: Road InvITs Poised to More Than Double to Rs 5.45 Lakh Crore by 2030
