NHAI to Monetise 1,472 km of Highways in FY26
ROADS & HIGHWAYS

NHAI to Monetise 1,472 km of Highways in FY26

The National Highways Authority of India (NHAI) has unveiled a preliminary list of 24 highway assets slated for monetisation in the 2025-26 financial year. Covering a total of 1,472 km, these roads are part of the government’s broader infrastructure monetisation strategy to unlock value from existing assets while ensuring sustainable development.

For FY 2023-24, highway monetisation generated an estimated revenue of Rs 18.63 billion, demonstrating the potential of this initiative in funding future road development. The Ministry of Road Transport and Highways (MoRTH) is seeking stakeholder feedback on the proposed list, leaving room for modifications and additions.

Key Highway Stretches Identified The selected highways span across Maharashtra, Jharkhand, Uttar Pradesh, West Bengal, Bihar, and Telangana, with additional stretches in Chhattisgarh, Haryana, Gujarat, Karnataka, Kerala, and Odisha.

NHAI plans to monetise these roads using a mix of strategies, including:

Toll-Operate-Transfer (TOT): Private players pay an upfront lump sum in exchange for the right to collect toll revenue. Infrastructure Investment Trusts (InvIT): A model allowing investment from institutional and retail investors. Securitisation: Bundling toll revenue into financial instruments for sale to investors.

The TOT model remains the preferred approach, as it provides immediate capital infusion for further infrastructure development and maintenance.

Monetisation Goals and Strategy Compared to FY 2024-25, when 2,741 km of highways were earmarked for monetisation across 33 stretches, the FY 2025-26 target is more conservative, focusing on fewer but potentially more lucrative assets. This shift aligns with the government’s evolving strategy to maximise revenue efficiency while ensuring a steady pipeline of future projects.

MoRTH had set an ambitious Rs 390 billion target for monetisation in FY 2024-25 and remains committed to leveraging its highway network for capital generation. Notably, the TOT Bundle-16 agreement, signed in November 2024, secured Rs 66.61 billion for a 251 km stretch, setting a benchmark for upcoming deals.

In FY 2023-24, national highway monetisation yielded a record Rs 403.14 billion, underscoring the success of the initiative. These funds are being reinvested into road expansion, safety improvements, and connectivity enhancements to fuel India’s economic growth.

A Sustainable Infrastructure Vision Beyond financial gains, NHAI’s monetisation efforts are positioned as a catalyst for modernising India’s road network while promoting eco-friendly urban development.

"As NHAI continues to explore innovative monetisation methods, it is clear that road asset monetisation is set to play a crucial role in bridging India’s infrastructure funding gap," the authority noted in its latest communication.

With an emphasis on long-term sustainability, reduced carbon footprints, and enhanced connectivity, the initiative is expected to not only strengthen national infrastructure but also boost trade and regional development.

As public and private sector engagement deepens, the success of these monetisation efforts will shape India’s transport future, ensuring a self-sustaining model for infrastructure financing.

The National Highways Authority of India (NHAI) has unveiled a preliminary list of 24 highway assets slated for monetisation in the 2025-26 financial year. Covering a total of 1,472 km, these roads are part of the government’s broader infrastructure monetisation strategy to unlock value from existing assets while ensuring sustainable development. For FY 2023-24, highway monetisation generated an estimated revenue of Rs 18.63 billion, demonstrating the potential of this initiative in funding future road development. The Ministry of Road Transport and Highways (MoRTH) is seeking stakeholder feedback on the proposed list, leaving room for modifications and additions. Key Highway Stretches Identified The selected highways span across Maharashtra, Jharkhand, Uttar Pradesh, West Bengal, Bihar, and Telangana, with additional stretches in Chhattisgarh, Haryana, Gujarat, Karnataka, Kerala, and Odisha. NHAI plans to monetise these roads using a mix of strategies, including: Toll-Operate-Transfer (TOT): Private players pay an upfront lump sum in exchange for the right to collect toll revenue. Infrastructure Investment Trusts (InvIT): A model allowing investment from institutional and retail investors. Securitisation: Bundling toll revenue into financial instruments for sale to investors. The TOT model remains the preferred approach, as it provides immediate capital infusion for further infrastructure development and maintenance. Monetisation Goals and Strategy Compared to FY 2024-25, when 2,741 km of highways were earmarked for monetisation across 33 stretches, the FY 2025-26 target is more conservative, focusing on fewer but potentially more lucrative assets. This shift aligns with the government’s evolving strategy to maximise revenue efficiency while ensuring a steady pipeline of future projects. MoRTH had set an ambitious Rs 390 billion target for monetisation in FY 2024-25 and remains committed to leveraging its highway network for capital generation. Notably, the TOT Bundle-16 agreement, signed in November 2024, secured Rs 66.61 billion for a 251 km stretch, setting a benchmark for upcoming deals. In FY 2023-24, national highway monetisation yielded a record Rs 403.14 billion, underscoring the success of the initiative. These funds are being reinvested into road expansion, safety improvements, and connectivity enhancements to fuel India’s economic growth. A Sustainable Infrastructure Vision Beyond financial gains, NHAI’s monetisation efforts are positioned as a catalyst for modernising India’s road network while promoting eco-friendly urban development. As NHAI continues to explore innovative monetisation methods, it is clear that road asset monetisation is set to play a crucial role in bridging India’s infrastructure funding gap, the authority noted in its latest communication. With an emphasis on long-term sustainability, reduced carbon footprints, and enhanced connectivity, the initiative is expected to not only strengthen national infrastructure but also boost trade and regional development. As public and private sector engagement deepens, the success of these monetisation efforts will shape India’s transport future, ensuring a self-sustaining model for infrastructure financing.

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