New Delhi (ABC Live): For many decades, India treated national highways as public goods. During this period, the State built and maintained these roads using public funds and borrowing. However, as highway expansion accelerated, costs rose sharply. At the same time, borrowing space narrowed. As a result, the government began to explore alternative funding models.

Against this background, the National Highways Infra Trust (NHIT) was established in October 2020. Through NHIT, authorities pool toll revenues from existing highways and distribute them to investors under a SEBI-regulated Infrastructure Investment Trust (InvIT) structure.

At present, NHIT holds 26 fully operational highway assets, covering approximately 2,345 km across around 12 States. Importantly, tolls are collected through 41 toll plazas, most of which lie on high-traffic economic corridors. Therefore, NHIT monetises core national infrastructure rather than marginal road assets.

II. Why a Performance Audit Is Necessary

A performance audit is necessary for several connected reasons.

First, NHIT commits toll revenues for long periods, typically 20 to 30 years.
Second, millions of road users pay tolls on these highways every day.
Third, NHIT mobilised a substantial sum of around ₹18,380 crore in a major monetisation round.
Finally, both domestic and foreign institutional investors now hold a growing share of NHIT units.

Taken together, these factors justify scrutiny. Similarly, other flagship programmes that rely on front-loaded fiscal gains have required outcome-based audits. A comparable approach is reflected in ABC Live’s Performance Audit of India’s Green Hydrogen Mission:
👉 https://abclive.in/2025/11/12/indias-green-hydrogen-mission-performace-audit/

Therefore, this audit focuses on outcomes and impact, rather than legal form alone.

III. NHIT: Core Data Profile and Scale of Operations

A. Institutional Structure

Primary source: https://nhit.co.in/

In essence, NHIT functions as a financial holding trust. Thus, it does not operate as a construction or execution agency.

B. Asset Portfolio

Consequently, NHIT monetises completed and revenue-generating highways rather than unfinished or speculative projects.

C. Financial Scale

As a result, NHIT operates at a scale comparable to a large public-sector enterprise.

D. Revenue and Distributions

However, these distributions depend on toll revenue for nearly 100% of distributable income. Therefore, toll stability becomes structurally critical.

IV. Fiscal Context: Capital Raised Versus Revenue Locked

NHIT emerged when NHAI faced rising debt and limited borrowing space. By mobilising approximately ₹18,380 crore, NHIT reduced the need for additional sovereign borrowing.

At the same time, this relief required authorities to commit future toll income.

Accordingly, the audit records show that NHIT improves short-term fiscal efficiency. However, it contractually locks revenue streams for the long term.

V. Monetisation Without Privatisation

In principle, NHIT avoids outright privatisation. Instead, the State retains ownership of highways. However, economic rights over toll revenues are transferred to the trust and its unitholders.

Consequently, political resistance remains limited. Nevertheless, future toll policy becomes harder to revise.

VI. Public Infrastructure Versus Financial Contracts

Once toll income is securitised, policy decisions change character. For example, toll reductions no longer remain simple administrative actions. Instead, they affect cash flows, unit prices, and investor expectations.

As a result, public-interest decisions increasingly compete with contractual stability.

VII. Economy: Cost to the Public System

From a fiscal perspective, NHIT lowers short-term borrowing needs. At the same time, it commits to a recurring public revenue stream for decades.

Therefore, the audit finds that NHIT shifts fiscal pressure forward in time rather than eliminating it.

VIII. Efficiency: Asset Utilisation and Maintenance

Because NHIT holds brownfield assets with established traffic, operational efficiency remains high. However, a risk persists. If managers prioritise distributions too strongly, maintenance expenditure may decline. Over time, this can weaken asset quality.

IX. Effectiveness: Achievement of Objectives

Therefore, effectiveness depends on traffic growth, toll stability, and future asset transfers.

X. Financial Performance and Risk

NHIT units trade within a narrow range because yields remain stable. However, this stability depends on toll escalation and regulatory certainty. Consequently, policy intervention becomes more sensitive and costly.

XI. Governance and Transparency

Despite NHIT’s scale, governance gaps remain.

For instance, SPV-level debt is disclosed only in aggregate. Similarly, asset-wise climate and flood risks across 2,345 km remain undisclosed. As a result, long-term risk visibility remains limited.

XII. Key Persons, Entities, and Control Structure

• Sponsor: National Highways Authority of India (NHAI)
• Investment Manager: National Highways Infra Investment Managers Pvt. Ltd. (operational and financial control)
• Trustee: IDBI Trusteeship Services Limited (fiduciary oversight limited to unitholders)
• SPVs: Asset-level execution and debt
• Unitholders: Economic rights only
• Toll-payers: No governance representation

Viewed institutionally, control flows away from public administration toward financial management, even though assets remain publicly owned.

XIII. Public Interest and Toll-Payer Impact

From a public-interest perspective, highways remain public assets. However, contractual obligations now restrict toll flexibility. As a result, road users bear long-term costs, while fiscal benefits accrue upfront.

XIV. Impact of CCI Approval of Nitro Asia Holdings II

In January 2026, the Competition Commission of India (CCI) approved the acquisition of NHIT units by Nitro Asia Holdings II Pte. Ltd. through on-market purchases.

Official PIB source:
👉 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2219281

Although the approval is competition-neutral, it nevertheless strengthens NHIT’s role as a global yield asset. Consequently, toll rigidity deepens further.

XV. Integrated Data-Based Audit Conclusion

Based on verified data on capital mobilisation, asset scale, revenue dependency, tenure length, governance disclosures, and user impact, the audit reaches a clear conclusion.

NHIT delivers short-term fiscal efficiency. However, unless corrective safeguards are introduced, it creates long-term policy rigidity, governance risk, and intergenerational cost transfer to toll-paying users.

XVI. Audit Recommendations

Accordingly, the audit recommends:

1. Mandating asset-wise and climate-risk disclosure
2. Introducing periodic public-interest toll reviews
3. Monitoring foreign and institutional unitholder concentration
4. Establishing statutory oversight for the monetisation of essential public utilities
5. Preserving emergency toll-waiver powers

XVII. How We Verify

For verification, the audit relies only on official public records, including:

• NHIT disclosures: https://nhit.co.in/
• PIB / CCI release: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2219281
• SEBI InvIT Regulations

Only data confirmed across official sources has been used.

XVIII. Final Verdict

In conclusion, National Highways Infra Trust improves fiscal efficiency in the present. However, without stronger governance, transparency, and toll-payer safeguards, it risks constraining public policy flexibility in the future.