Of this, the TOT route accounted for 53 per cent of total monetisation during FY2019-FY2025. InvIT, introduced in FY2022, has steadily expanded its share, reflecting NHAI’s strategy to diversify its funding mechanisms and attract long-term investment
Of this, the TOT route accounted for 53 per cent of total monetisation during FY2019-FY2025. InvIT, introduced in FY2022, has steadily expanded its share, reflecting NHAI’s strategy to diversify its funding mechanisms and attract long-term investment
The National Highways Authority of India (NHAI) is poised to generate between Rs 35,000 and Rs 40,000 crore in FY2026 if the road assets earmarked for monetisation are successfully executed, according to a report released on Wednesday. This would represent a marked increase from Rs 24,399 crore monetised in FY2025 and exceed the budgeted target of Rs 30,000 crore for the upcoming fiscal year, underscoring the authority’s growing capacity to leverage its infrastructure assets.
The projections are based on the median valuation multiple of 0.62 times observed across 10 toll-operate-transfer (TOT) bundles awarded over the past three years. These multiples, which have varied between 0.46 and 0.93 times, are calculated on toll collection track records spanning four to 15 years, with a median concession period of 20 years.
“The NHAI has predominantly utilised two asset monetisation mechanisms—TOT and Infrastructure Investment Trusts (InvIT)—since FY2019,” said Vinay Kumar G, Sector Head, Corporate Ratings, ICRA. “Through these channels, the authority has successfully raised Rs 92,633 crore up to FY2025.”
Of this, the TOT route accounted for 53 per cent of total monetisation during FY2019-FY2025. InvIT, introduced in FY2022, has steadily expanded its share, reflecting NHAI’s strategy to diversify its funding mechanisms and attract long-term investment.
Since FY2023, NHAI has started publishing annual lists of assets designated for monetisation. Between FY2023 and FY2025, approximately 7,000 km of roads were earmarked for monetisation, of which about 2,000 km have been completed to date. An additional 1,170 km have been offered for sale through five TOT bundles, leaving nearly 3,750 km still available for monetisation.
The authority has already identified a robust pipeline of projects for FY2026, including the anticipated completion of five TOT bundles with bids already initiated. Additionally, project stretches are planned for transfer to the NHAI’s InvIT, further diversifying the funding approach and enhancing long-term returns.
ICRA’s analysis suggests that monetisation of the existing and newly identified assets could potentially generate proceeds of Rs 35,000-40,000 crore in FY2026. If realised, this would take NHAI’s cumulative monetisation since inception to around Rs 1.3 lakh crore.
“The National Monetisation Pipeline (NMP) set a target of approximately Rs 53,366 crore with a total monetisable length of 8,894 km for FY2025, whereas the FY2025 Budget projected a more conservative figure of Rs 30,000 crore,” Kumar noted.
The growth in monetisation proceeds reflects NHAI’s strategic approach to optimising its asset portfolio and leveraging infrastructure for funding without overburdening public finances. By using mechanisms such as TOT and InvIT, the authority has tapped private capital while maintaining operational control over key highway assets.
With road infrastructure continuing to expand across India, NHAI’s monetisation strategy provides a sustainable model to fund new projects, improve maintenance, and attract long-term investment. Analysts suggest that timely execution of identified assets will be critical to achieving the projected Rs 35,000-40,000 crore, reinforcing NHAI’s role as a key driver of India’s infrastructure-led economic growth.
