NHAI to Create Asset Register for Long-Term Monetisation
ROADS & HIGHWAYS

NHAI to Create Asset Register for Long-Term Monetisation

The National Highways Authority of India (NHAI) is set to develop a comprehensive register of highway stretches with long-term monetisation potential, aimed at maximising the value of road assets and providing better strategic visibility for investors.

Currently, NHAI issues an annual list of highways proposed for monetisation through either the toll-operate-transfer (TOT) model or infrastructure investment trusts (InvITs). The newly planned register will supplement this yearly list, enabling investors to frame long-term strategies based on a broader pipeline of viable assets.

For the 2025 financial year, the monetisation list comprises 24 highway stretches spanning a total of 1,472 km. While the Union Budget has set a monetisation target of Rs 300 billion (approximately £2.8 billion), this figure may be revised upward, as the latest asset monetisation strategy emphasises a more aggressive sales push.

The forthcoming asset register will include detailed technical and financial information to assess monetisation potential. Based on traffic density and toll revenue prospects, assets will be categorised into four tiers: highly attractive, moderately attractive, potentially attractive, and low revenue-per-kilometre. This classification will support the creation of well-balanced asset bundles that combine short-term returns with long-term growth, offering investors lower risk and higher appeal. Stretches with low toll revenue will be excluded from bundling.

To qualify for the register, highway stretches must have been operational for at least a year, with all construction works completed and no significant upgrades anticipated in the near future. Additionally, they must demonstrate strong toll collections—currently, stretches generating more than Rs 8 million per kilometre per year are being evaluated for inclusion. Only legally unencumbered assets, free from disputes or arbitration, will be added.

According to the strategy document, NHAI also plans to roll out a public InvIT to promote retail investor participation. Three bundles will be offered for monetisation every quarter through this mechanism. This public trust will operate alongside the private National Highway Infrastructure Trust (NHIT), which has already completed four monetisation rounds.

The move underscores the government's commitment to enhancing infrastructure financing through sustainable and investor-friendly models.

The National Highways Authority of India (NHAI) is set to develop a comprehensive register of highway stretches with long-term monetisation potential, aimed at maximising the value of road assets and providing better strategic visibility for investors.Currently, NHAI issues an annual list of highways proposed for monetisation through either the toll-operate-transfer (TOT) model or infrastructure investment trusts (InvITs). The newly planned register will supplement this yearly list, enabling investors to frame long-term strategies based on a broader pipeline of viable assets.For the 2025 financial year, the monetisation list comprises 24 highway stretches spanning a total of 1,472 km. While the Union Budget has set a monetisation target of Rs 300 billion (approximately £2.8 billion), this figure may be revised upward, as the latest asset monetisation strategy emphasises a more aggressive sales push.The forthcoming asset register will include detailed technical and financial information to assess monetisation potential. Based on traffic density and toll revenue prospects, assets will be categorised into four tiers: highly attractive, moderately attractive, potentially attractive, and low revenue-per-kilometre. This classification will support the creation of well-balanced asset bundles that combine short-term returns with long-term growth, offering investors lower risk and higher appeal. Stretches with low toll revenue will be excluded from bundling.To qualify for the register, highway stretches must have been operational for at least a year, with all construction works completed and no significant upgrades anticipated in the near future. Additionally, they must demonstrate strong toll collections—currently, stretches generating more than Rs 8 million per kilometre per year are being evaluated for inclusion. Only legally unencumbered assets, free from disputes or arbitration, will be added.According to the strategy document, NHAI also plans to roll out a public InvIT to promote retail investor participation. Three bundles will be offered for monetisation every quarter through this mechanism. This public trust will operate alongside the private National Highway Infrastructure Trust (NHIT), which has already completed four monetisation rounds.The move underscores the government's commitment to enhancing infrastructure financing through sustainable and investor-friendly models.

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