In the first highway monetisation deal of the current financial year, IRB Infrastructure Developers Ltd has emerged as the highest bidder for an operational highway asset under the National Highways Authority of India’s (NHAI) Toll Operate Transfer (TOT) model. The company submitted a winning bid of Rs 92 billion for a 333.4-kilometre highway network in Uttar Pradesh, according to people familiar with the matter. The bid reflects a revival of investor interest in operational highways, particularly those with high toll collection potential. Financial bids for the Uttar Pradesh highway bundle were opened earlier this week, with final approval expected after due scrutiny by NHAI and the Ministry of Road Transport and Highways. The monetised bundle, known as TOT Bundle 17, includes key highway sections connecting Lucknow to Ayodhya, Ayodhya to Gorakhpur, and Lucknow to Sultanpur. This is the first TOT monetisation in over a year — the last being Bundle 16 in September 2024. According to sources, NHAI has raised its asset monetisation target for FY 2025–26 to Rs 400 billion, up from Rs 300 billion projected in the Union Budget. In FY 2024–25, the authority raised Rs 287.24 billion through various monetisation initiatives. Of the Rs 400 billion target for this year, Rs 150 billion each is expected to come from TOT and Infrastructure Investment Trust (InvIT) routes, with the remaining from project-based financing. For FY 2026–27, NHAI has identified 24 road assets with a cumulative length of 1,472 kilometres for monetisation under TOT and InvIT models. In addition to Bundle 17, NHAI has opened bidding for five more highway packages — Bundles 18, 19, 20, 21, and 22 — covering a total of more than 845 kilometres. Monetisation of some of these is expected within the next two to three months. Under its updated Asset Monetisation Strategy released in June, NHAI plans to auction three TOT bundles each quarter — one small (worth around Rs 20 billion), one medium (Rs 50 billion), and one large (Rs 90 billion). The government estimates that India’s monetisable highway assets are valued at about Rs 15 trillion, as noted by Minister for Road Transport and Highways Nitin Gadkari. So far, NHAI has completed 11 rounds of TOT auctions, monetising 2,564 kilometres of highways and raising a total of Rs 489.95 billion. Some earlier rounds were cancelled or deferred due to market conditions. Under the TOT model, the highest bidder who meets technical qualifications gains the right to collect toll revenue from specified highway stretches for a concession period of 20 years, after which ownership reverts to NHAI. The funds raised through monetisation are reinvested into new infrastructure development, currently accounting for about 10 per cent of the ministry’s total budgetary resources. IRB’s successful bid underscores the growing confidence among private infrastructure developers and institutional investors in India’s long-term highway monetisation framework, which continues to play a vital role in funding the nation’s road-building ambitions.