Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
The National Highways Authority of India (NHAI) has detailed its asset monetisation strategy aimed at unlocking value from operational highway assets to finance new infrastructure development across the country. The framework relies on instruments such as Toll-Operate-Transfer (TOT), Infrastructure Investment Trusts (InvITs) and securitisation to attract long-term domestic and global investors. By recycling capital generated from mature assets, the authority seeks to reduce dependence on budgetary support while sustaining the pace of national highway expansion and improving overall asset management.
The National Highways Authority of India (NHAI) has set out a comprehensive asset monetisation strategy that seeks to generate capital from operational highway assets and channel the proceeds into the development of new road infrastructure, reinforcing the government's broader infrastructure financing model.
The strategy is based on the principle of asset recycling, whereby completed and revenue-generating highway stretches are monetised through market-based instruments while ownership of the underlying public assets remains with the government. The proceeds are intended to finance fresh highway construction and capacity expansion projects across the country.
NHAI has identified multiple monetisation avenues, including the Toll-Operate-Transfer (TOT) model, Infrastructure Investment Trusts (InvITs) and securitisation of toll revenues. Each mechanism is designed to attract long-term institutional investors such as pension funds, sovereign wealth funds, insurance companies and infrastructure-focused investment firms seeking stable cash-generating assets.
Under the TOT model, investors obtain the right to operate and collect toll revenues from completed highway stretches for a fixed concession period in return for an upfront payment to NHAI. The authority, in turn, utilises these funds to finance new projects without relying entirely on government budget allocations or additional borrowing.
The InvIT structure enables operational highway assets to be pooled into an investment platform that distributes income generated from toll collections to unit holders. This approach provides investors with access to infrastructure assets while allowing NHAI to unlock value from completed projects and retain a pipeline for future monetisation.
The strategy document highlights that asset monetisation differs from privatisation, as ownership of the highways continues to remain with the public sector. Instead, it focuses on transferring the right to operate and maintain assets for a specified period while ensuring contractual obligations relating to maintenance standards and service quality.
According to the framework, monetisation also supports efficient lifecycle management of highway assets by bringing private sector operational expertise and long-term capital into infrastructure management. It enables the authority to recycle capital from mature assets into economically productive investments, thereby creating a self-sustaining financing cycle.
The strategy aligns with the government's National Monetisation Pipeline and broader efforts to increase private participation in infrastructure financing. Over the past few years, NHAI has successfully monetised several highway bundles through TOT auctions and InvIT transactions, attracting participation from both domestic and international investors.
As India's highway network continues to expand under programmes such as Bharatmala, the authority expects asset monetisation to remain a key funding mechanism alongside budgetary allocations and market borrowings. By leveraging completed assets to finance future construction, NHAI aims to sustain infrastructure investment while strengthening the long-term financial sustainability of the national highway sector.
Advertisement
Facebook
Whatsapp
