Synopsis: EAAA Alternatives, the arm of Edelweiss, has secured two Tamil Nadu highway stretches worth ₹2,259 crore under NHAI’s TOT programme, marking the authority’s first highway monetisation of the current financial year.
The National Highways Authority of India (NHAI) has started its FY27 asset monetisation drive, with Epic Concessions 2, backed by EAAA Alternatives, emerging as the winning bidder for a bundle of Tamil Nadu highway stretches under the Toll-Operate-Transfer (TOT) model.
What Was Acquired
Epic Concessions 2 Pvt Ltd, a portfolio company of EAAA Alternatives’ Infrastructure Yield Strategy, has signed a concession agreement with NHAI for an upfront payment of ₹2,259 crore. The deal covers two stretches on NH-38 and NH-83, the Trichy-Thanjavur and Madurai-Tuticorin sections, awarded under TOT Bundle 19, with a 20-year concession period.
Areas Expected to Benefit
EAAA’s Expanding Infrastructure Footprint
- Portfolio grows to 26 assets across 17 states, comprising over 7,700 lane kilometres
- The deal is part of a longer-term infrastructure investment strategy, as company representatives describe
- Long-term growth prospects in India’s infrastructure sector due to favorable policy support and increasing demand for transportation infrastructure
- Strategy framed around acquiring high-quality operating assets and creating value through active management
- Strong investor interest in EAAA TransInfra’s recently listed InvIT, CITIUS TransNet, cited as a sign of the platform’s broader traction
- CITIUS TransNet’s IPO raised ₹1,105 crore earlier this year
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What Is the TOT Model?
Under NHAI’s Toll-Operate-Transfer model, private investors make a one-time upfront payment to acquire the right to operate and collect toll revenue on a completed highway stretch for a fixed period, generally ranging from 15 to 30 years. Rather than selling the asset itself, NHAI transfers only the toll-collection and operating rights, freeing up capital to fund new road construction elsewhere.
NHAI’s Bigger Monetisation Push for FY27
- NHAI’s monetisation target for FY27, based on budget estimates, stands at approximately ₹30,000 crore, to be achieved through the TOT model and National Highways Infrastructure Trust (NHIT).
- To reach this, NHAI has shortlisted 17 highway stretches spanning a total of 1,692 km for monetisation through TOT and NHIT.
- Bidding is currently open for three more TOT bundles, Bundles 20, 21 and 22.
- Beyond this shortlist, NHAI is expected to identify a separate set of stretches to be monetised through its public Infrastructure Investment Trust (InvIT), launched last year.
The Bigger Picture: National Monetisation Pipeline
This deal is also in a much wider government endeavour. This second National Monetisation Pipeline (NMP), started last fiscal year has a total target of ₹16.32 lakh crore by 2029-30 and highways sector accounting for approximately 26%, this also represents Public-Private Partnership (PPP) along with TOT-type deals.
Current Status
The concession agreement for TOT Bundle 19 has already been signed between Epic Concessions 2 and NHAI, making this particular transaction complete. NHAI’s broader FY27 monetisation drive remains ongoing, with Bundles 20, 21 and 22 currently open for bidding, and the InvIT-route stretches yet to be finalised.
