National Highways Infra Trust

DearUnitholders,

It is with immense pride and gratitude that I address you in our third annual report. This year NHIT has continued to build on the success of ?ts past efforts, while continuing to grow and more than double ?ts portfolio. In achlevlng this, ?t has exemplified our theme of 'Aglllty and Success', as we navlgated the dynamic landscapes of ?nvestment and asset management with unprecedented efficacy.

A high point of the success was the acquisition of assets worth-? 16,200 crore comprising seven roads from our sponsor, NHAI, under the National Monetisation Pipeline. To achieve this, NHIT successfully raised funding in a time bound manner from lenders and investors at a premium of ? 1.28 per unit over NAV of ? 122.86. These new roads have expanded NHIT's portfolio to 15 toll roads spanning approximately 1,525 km across nine States and diversified across traffic categories and commodities. Thus, offering an effective proxy to India's GDP to investors and lenders. This expansive reach not only strengthens our asset base but also amplifies our impact on national connectivityand economicgrowth.

Our journey since maiden listing in November 2021 has been remarkable. The NAV has increased from list pnce of ?101 per unit to T 124.75 as of March 31, 2024. In addition, NHIT has cumulatively distributed ? 13.76 per unit over this period. The investor base has expanded by 6.6 times with significant increase in participation from new investor classes such as domestic pensi?n and provident fund trusts and wealth managers. The growth in investor base is a clear indication of the market's confidence ?n ouroperational performance and future potential. In this journey, we have received unwavering commitment from our large investors, including CPP Investment Board Pr?vate Holdings lnc„ Ontario Limited and State Bank of India Group in all the three rounds of fund raising.

The business contin?es to build capabilities in the areas of operations and maintenance to improve the user experience. We are investing significant efforts to improve the Environment, Social and Governance standards of our roads. As a first step, we have commenced measurement and transparent reporting of various important parameters that underpin the ESG framework. We have drawn upa strategy to improve upon these parameters and have implemented several steps during this year, including Reduction in C02 footprint, usage of renewable energy and conservaron of natural resources (fossil fuel and water). We believe that our leaders at the ground, i.e. Project Managers of the various roads are the real change-makers. To train them to handle this transformaron and endow them with new skills, they are being provided continuous training, including through a year-long program designed in collaboration with Department of Engineering Design from Indian Institute of Technology, Madras.

We believe that living harmoniously with the communities that we serve is essential for us to op?rate sustainably. In this regard, we have identified several short and long term community engagement programs at each of our toll plazas. In our experience, the initiatives implemented last year, have helped build mutual trust and foster well-being of the communities.

We are also investing into technology in the areas of data analytics, creating digital twins of our assets, and build tools for predictive maintenance. The fruits of these efforts will bear in the future, but it is our firm belief that these investments will build resilience in our business and create a long term valu? for our stakeholders.

These achievements were realized through the dedicated efforts of the employees from the Investment Manager, Project SPVs, and Project Management Company, who functioned as a cohesive and driven team. Their steadfast dedication to excellence, creativity, and enthusiasm for sustainable development have played a crucial role in propelling NHIT forward.

Our esteemed Board of Directors of the Investment Manager, have continuously supported and guided us in achieving the sustained success since inception. Under their leadership, NHIT will continu? to achieve several milestones successfully. I am personally indebted for their support to me during several challenging situations.

We are immensely grateful for the support provided by our sponsor, NHAI, and the Ministry of Road Transport & Highways (MoRTH). We are thankful to Shri Anurag Jain, IAS, Secretary, MoRTH for his guidance, and extend our appreciation to Shri Santosh Yadav, IAS, Chairman NHAI, for his constant support and guidance to NHIT. Special thanks to Shri NRVVMK Rajendra Kumar, Member (Finance) - NHAI for his sustained efforts ?n addressing the challenges NHIT encountered throughout this significant journey. We thank Shri Amit Kumar Ghosh, IAS, outgoing Additional Secretary, MoRTH and his successor Shri Vinay Kumar, IAS, Joint Secretary, MoRTH for their valuable contributions. We also recognize the contributions from various NHAI officers, including Shri Akhil Khare, Chief Executive Officer, NHIPMI, Shri B M Rao, CGM (Finance), Shri A K Singh, CGM (Finance), Shri A K Sharma, CGM (Technical), Shri K V Singh, CGM (Commercial Operation), Shri Prashant Gawasane, CGM (CO Divisi?n), Shri Subhash Khurana, GM - F&A (Retd.), Shri D.K Chaturvedi, GM (BOT, TOT, InvIT), Shri A R Chitranshi, DGM (TOT & lnvlT),Shr? Anant Manohar.DGM (Finance) amongothers.

Dear Unitholders,

Three years and three acquisitions so far. Big achievements are the summation of good wishes and intentions properly focussed.

This year saw the largest ever single fund raiser for projects monetised through NHAI. For a fresh acquisition of over 16,000 crores, we as a team, were happy to dem?nstrate agility and speed, in contributing to the ambitious program set by the government while equally contributing to enhancing valu? to our stakeholders.

While extremely grateful to the ever-growing ?nvestor base, a speclal mentlon to the stakeholders who have demonstrated thelr unwaverlng support, NHAI (Sponsor to the InvIT), our Unitholders, Banks, financial ?nstltutions, corporates and retall ?nvestors who have ?nvested ?n our debt Instruments. I do truly belleve that we are on our way towards enabling partlclpatlon ?n Infrastructure growth, to the common man.

Boyed by our large ?nvestor base and keeplng ?n mlnd our stated objectives, we would ?n the coming year, aspire to issue debt Instruments, targetlng the wlde diaspora of Bond ?nvestors who are keen to partic?pate ?n the Infrastructure sector.

While contlnulng to surpass expectatlons and dellverlng valu? to our shareholders we have embarked on a journey of mlndfulness wlth the endeavour towards process ?mprovement and automatlon. Prudent financial management practlces, sustalnablllty drlven worldvlew and a dlsclplined approach to rlsk assessment continu? to be our drlvlng motto. Accordlngly, the year ahead would see responslble ?nvestments towards digital transformation and process improvements.

It ?s our firm belief that we do not exlst ?n isolatlon, we have commenced, consclously and transparently tracklng our overall sustalnablllty scores wlth a view towards sustalnable growth and constant progress.

Financi?is continu? to be strong wlth all financial ratlos and metrlces as per expectatlons. Our well dlverslfied portfolio of assets contin?es to enjoy a AAA ratlng both for the debt and ?n the Issuer Category.