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• India plans to monetise 28 national highway assets spanning over 1,800 km during FY27.
• The National Highways Authority of India aims to raise nearly INR 35,000 crore through InvIT and TOT models.
• Haryana and Uttar Pradesh account for the highest number of highway stretches identified for monetisation.
• The programme forms part of the government’s broader infrastructure asset recycling and funding strategy under NMP 2.0.
India is planning to monetise 28 national highway assets covering more than 1,800 km during FY27 as part of a broader infrastructure asset recycling programme aimed at funding new road development projects across the country. The National Highways Authority of India (NHAI) is targeting monetisation proceeds of around INR 35,000 crore through a mix of infrastructure investment trusts (InvITs) and toll-operate-transfer (TOT) models. Advertisement
According to government officials, NHAI has prepared a list of highway stretches identified for monetisation, with Haryana accounting for the highest number of assets, followed by Uttar Pradesh. The monetisation exercise will include a combination of built-operate-transfer (BOT) projects and engineering, procurement and construction (EPC) road assets. Officials stated that hybrid annuity model assets are being prioritised due to relatively lower capital expenditure risk compared to other project structures.
The proposed monetisation programme comes amid the government’s continued push to recycle operational infrastructure assets and channel proceeds towards new highway construction. Earlier this year, the Centre also permitted sovereign wealth funds and pension funds to directly invest in greenfield toll-road projects, widening the pool of long-term infrastructure investors.
The roads ministry’s monetisation receipts stood at nearly INR 29,000 crore in FY26. NHAI recently monetised more than 310 km of national highways under InvIT Round-5, raising around INR 6,366 crore, while TOT Bundle-18 generated approximately INR 3,087 crore. Overall monetisation receipts for FY26 reached around INR 28,307 crore, close to the authority’s annual target of INR 30,000 crore.
Officials indicated that over the next three to five years, an additional 1,500 km of completed and operational highways could be introduced into public InvIT structures to generate fresh capital for national highway development. Earlier this year, the ministry’s maiden public InvIT monetised five highway stretches spanning more than 260 km across four states and mobilised over INR 9,000 crore.
The monetisation drive forms part of the National Monetisation Pipeline (NMP) 2.0 unveiled earlier this year. Under the revised framework, the highway sector has been assigned a monetisation target of around INR 4.42 lakh crore between FY26 and FY30. Asset monetisation planned specifically for FY27 is expected to generate approximately INR 68,770 crore under the broader programme.
NHAI has increasingly relied on TOT bundles, InvIT structures and securitisation mechanisms to unlock value from operational road assets while reducing debt exposure and financing new infrastructure expansion. Government data shows that highway monetisation has emerged as one of the largest contributors under the national asset monetisation programme in recent years.
The monetisation strategy is also expected to increase private sector participation in operational highway assets, particularly from institutional investors seeking long-term infrastructure-linked returns. Officials stated that monetisation proceeds would continue to be reinvested into new national highway projects and transport infrastructure expansion across the country.
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