NEW DELHI - PNC Infratech and its subsidiary PNC Infra Holdings have struck a deal with KKR-backed Highways Infrastructure Trust (HIT) to offload a portfolio of 12 road assets for a total consideration of Rs 9,005.7 crore ($1 = ₹82.85). The agreement, which is currently subject to customary closing conditions including regulatory and bank approvals, will see the transfer of approximately 3,800 lane kilometers of road projects spread across the Indian states of Rajasthan, Uttar Pradesh, Madhya Pradesh, and Karnataka.
The portfolio includes eleven National Highways Authority of India (NHAI) projects under the hybrid annuity model and one UPSHA toll road concession. Out of these, ten are already operational while two are expected to be completed before they are handed over to HIT. This acquisition is poised to considerably bolster HIT's assets under management, aligning with the trust's strategic plans for growth.
The hybrid annuity model, which has been adopted by NHAI, is a public-private partnership framework where the government provides partial funding in the form of fixed annuity payments. This model is designed to limit the financial risk for private investors and has been instrumental in attracting investment in India's road infrastructure sector.
This transaction represents a significant expansion for HIT, which is managed by Highway Concessions One, as it continues to consolidate its position in the infrastructure investment landscape. The move by PNC Infratech to divest these assets is in line with the broader industry trend where infrastructure developers monetize their operational assets to unlock capital for new projects and debt reduction.
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