- Why in news
- On 16 July 2026, NHAI said the National Highways Infra Trust (NHIT), an InvIT it sponsors, has engaged General Management Consultants (GMCs) to run O&M of 908 km of national highways in the first phase.
- Registration
- NHIT was registered with SEBI in October 2020.
- Portfolio size
- NHIT manages highway assets of 2,653 km combined length.
- Phase one of GMC role
- In the first phase, GMCs will handle O&M of 908 km.
- Project Manager
- NHIPMPL, a wholly owned NHAI subsidiary, is the Project Manager and ensures O&M, directly or through consultants, with reporting under SEBI InvIT Regulations.
- Regulator
- InvITs are regulated by SEBI under the SEBI (Infrastructure Investment Trusts) Regulations, 2014.
Don’t confuse with InvIT vs REIT: InvITs hold infrastructure assets such as roads and power lines. REITs hold income-generating real estate. Both are SEBI-regulated trusts.
Don’t confuse with InvIT vs TOT model: In TOT, NHAI leases highway toll rights to a concessionaire for a fixed period. In an InvIT, assets are pooled in a trust and investors hold units.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Monetising operational highways through InvITs recycles capital into new projects and draws in long-term domestic and global investors.
- Professional O&M with technology-based inspections can improve road quality and safety.
Problems
- Investor returns depend on toll revenue, so traffic and toll-rate risks matter.
- O&M quality needs strong monitoring and a capable pool of specialised contractors.
Way forward
- Build a deep ecosystem of O&M consultants and contractors with clear performance standards.
- Keep disclosure and SEBI compliance strict to hold investor confidence.
Put in your answer
NHIT as an asset monetisation example: NHIT shows how NHAI uses an InvIT to monetise operational highways and attract investment.
- 2021Mains GS3 · Q12Infrastructure investment's role in inclusive growth, Indian experience
- 2022Mains GS3 · Q1Need for PPP in infrastructure; its role in railway redevelopment
- 2013Mains GS3 · Q12Pros and cons of PPP model for infrastructure development
- 2023Prelims Q21Tax treatment of InvIT distributions; InvITs as SARFAESI borrowers
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: InvIT asset monetisation is a lasting topic, but this release is routine O&M news with little for a statement.
Worth revising until Prelims 2028: most news questions come within two years of the event.