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The central government has allocated INR 12,357 crore to the National Highways Authority of India (NHAI) for highway monetisation in the current financial year, lower than the earlier budgeted and revised estimate of INR 15,000 crore. The authority has identified 24 highway stretches covering around 1,472 km for monetisation through models such as Toll-Operate-Transfer (TOT), Infrastructure Investment Trusts (InvITs), and securitisation. The reduction comes even as the ministry had set a higher internal target for asset monetisation, reflecting a calibrated approach to infrastructure funding and private participation.
The central government has approved INR 12,357 crore for highway monetisation by the National Highways Authority of India (NHAI) in the current financial year. This is lower than the earlier budgeted and revised estimate of INR 15,000 crore for the same period. Advertisement
The allocation supports NHAI's programme to monetise operational highway assets and reinvest the proceeds into new road development. For the ongoing year, the authority has prepared a tentative list of 24 highway stretches with a total length of around 1,472 km for monetisation.
These road assets are spread across several states, including Maharashtra, Jharkhand, Uttar Pradesh, West Bengal, Bihar, Telangana, Chhattisgarh, Haryana, Gujarat, Karnataka, Kerala and Odisha. The identified stretches are expected to be offered under different monetisation models depending on traffic patterns and revenue potential.
In comparison, the previous year saw NHAI identify 33 highway stretches covering about 2,741 km for asset monetisation. The lower number of stretches this year indicates a more selective pipeline.
NHAI primarily follows three routes for monetisation. Under the Toll-Operate-Transfer (TOT) model, private concessionaires pay an upfront amount to operate and collect tolls on operational highways for a fixed period. Through Infrastructure Investment Trusts (InvITs), the authority transfers revenue-generating assets into a trust structure that allows institutional investors to participate. The third route is securitisation, where future toll revenues are used to raise funds upfront.
The Ministry of Road Transport and Highways had internally targeted around INR 30,000 crore in monetisation receipts for the year. Over the past few years, asset recycling has become a key part of the road sector's funding strategy. Cumulatively, the ministry has monetised highway assets worth more than INR 1,52,000 crore through TOT bundles, InvIT rounds and other mechanisms.
NHAI has earlier completed multiple TOT bundles and launched the National Highways Infra Trust (NHIT) under the InvIT structure to attract long-term institutional capital. These efforts are aimed at reducing dependence on budgetary support and borrowings, while maintaining the pace of highway construction and expansion across the country.
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