Highway Asset Monetisation to Surge Under NMP-II
ROADS & HIGHWAYS

Highway Asset Monetisation to Surge Under NMP-II

The government is set to accelerate the monetisation of highway assets under the second phase of the National Monetisation Pipeline (NMP-II), planned for FY26 to FY30. The new phase aims to generate Rs 3.5 trillion by leasing out operational highways, more than doubling the Rs 1.6 trillion target of NMP-I (FY21-FY25), a senior official said.

According to Vinay Kumar, Additional Secretary, Ministry of Road Transport and Highways (MoRTH), Rs 1.2 trillion has already been raised under NMP-I, with the remaining amount expected to be mobilised by March 2025.

The funds will be used to reduce the National Highways Authority of India’s (NHAI) debt burden while sustaining highway construction. Monetisation proceeds will be reinvested into new projects, alongside efforts to attract private capital with customised investment models.

In March, 11 highway stretches will be monetised via the National Highways Infrastructure Trust (NHIT), generating about Rs 180 billion. Additionally, a Toll Operate Transfer (ToT) round is also in the pipeline. ToT, Infrastructure Investment Trusts (InvITs), and project-based financing have each played a significant role in the monetisation process.

This year, NHAI has already raised Rs 82.9 billion through monetising 375 km of highways. Under NMP-II, the government plans to raise Rs 10 trillion across various infrastructure sectors. The pool of monetisable road assets is expanding rapidly, with an additional 8,000 km of highways identified this year.

Over the last decade, the length of four-lane and wider highways has grown 2.5 times, reaching approximately 45,000-46,000 km from 18,000 km. The government also plans to expand high-speed corridors to 50,000 km from the current 4,500 km.

With the shift from the Bharatmala Pariyojana’s corridor-based approach, the ministry has developed a Vision Document for network-based highway planning. This master plan ensures that no location is more than 100 km from an expressway—reduced to 60 km for the Northeast. The aim is to expand the national highway network to 200,000 km from the current 146,000 km, led by 50,000 km of expressways.

By FY31, high-speed corridors are expected to reach 25,000 km, with 18,000 km of expressways planned in the next six years. Capital expenditure on highways has been steady at Rs 3 trillion annually, with private investors expected to contribute Rs 350 billion yearly from FY26.

The government is set to accelerate the monetisation of highway assets under the second phase of the National Monetisation Pipeline (NMP-II), planned for FY26 to FY30. The new phase aims to generate Rs 3.5 trillion by leasing out operational highways, more than doubling the Rs 1.6 trillion target of NMP-I (FY21-FY25), a senior official said. According to Vinay Kumar, Additional Secretary, Ministry of Road Transport and Highways (MoRTH), Rs 1.2 trillion has already been raised under NMP-I, with the remaining amount expected to be mobilised by March 2025. The funds will be used to reduce the National Highways Authority of India’s (NHAI) debt burden while sustaining highway construction. Monetisation proceeds will be reinvested into new projects, alongside efforts to attract private capital with customised investment models. In March, 11 highway stretches will be monetised via the National Highways Infrastructure Trust (NHIT), generating about Rs 180 billion. Additionally, a Toll Operate Transfer (ToT) round is also in the pipeline. ToT, Infrastructure Investment Trusts (InvITs), and project-based financing have each played a significant role in the monetisation process. This year, NHAI has already raised Rs 82.9 billion through monetising 375 km of highways. Under NMP-II, the government plans to raise Rs 10 trillion across various infrastructure sectors. The pool of monetisable road assets is expanding rapidly, with an additional 8,000 km of highways identified this year. Over the last decade, the length of four-lane and wider highways has grown 2.5 times, reaching approximately 45,000-46,000 km from 18,000 km. The government also plans to expand high-speed corridors to 50,000 km from the current 4,500 km. With the shift from the Bharatmala Pariyojana’s corridor-based approach, the ministry has developed a Vision Document for network-based highway planning. This master plan ensures that no location is more than 100 km from an expressway—reduced to 60 km for the Northeast. The aim is to expand the national highway network to 200,000 km from the current 146,000 km, led by 50,000 km of expressways. By FY31, high-speed corridors are expected to reach 25,000 km, with 18,000 km of expressways planned in the next six years. Capital expenditure on highways has been steady at Rs 3 trillion annually, with private investors expected to contribute Rs 350 billion yearly from FY26.

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