NHAI’s ₹1863 Crore Highway Monetisation Plan: 24 Road Assets Up for Grabs in FY26!

The National Highways Authority of India (NHAI) plans to monetise 24 road assets in the financial year 2025-26, covering a total length of 1,472 km and generating an estimated annual revenue of ₹1,863 crore. The preferred monetisation method is the Toll-Operate-Transfer (TOT) model, though revisions may be made if necessary. NHAI has invited stakeholders to provide feedback and suggest additional assets for consideration.

Among the identified projects, Maharashtra has the highest number (five), followed by Jharkhand (four) and Uttar Pradesh (three), with other states having one or two each. In the ongoing financial year (2024-25), NHAI had identified 33 highway stretches spanning 2,741 km for monetisation.

The Ministry of Road Transport and Highways (MoRTH) aims to raise ₹39,000 crore through various monetisation strategies, including TOT, Infrastructure Investment Trusts (InvIT), and project-based financing. This initiative seeks to attract private investments, reducing reliance on public funds while accelerating infrastructure development. The funds generated will be reinvested into new highway projects, improving road quality, connectivity, and logistics efficiency. Ultimately, this monetisation effort aligns with India’s broader goal of modernising transport infrastructure and fostering economic growth.

NHAI’s ₹1863 Crore Highway Monetisation Plan: 24 Road Assets Up for Grabs in FY26!

The National Highways Authority of India (NHAI) has announced plans to monetise 24 road assets in the financial year 2025-26. These assets collectively span 1,472 km and are projected to generate an annual revenue of ₹1,863 crore, based on estimates from the 2023-24 fiscal year. The monetisation will primarily be executed through the Toll-Operate-Transfer (TOT) model, though alternative methods may be considered if required.

In an official order dated February 24, 2025, NHAI invited feedback from stakeholders regarding the identified assets and encouraged suggestions for additional projects to enhance the list. The authority emphasized that the monetisation process aims to optimize infrastructure development while ensuring sustainable revenue generation.

The 24 selected road projects are distributed across various states: Maharashtra accounts for five projects, Jharkhand for four, Uttar Pradesh for three, while West Bengal, Bihar, and Telangana each have two. Additionally, one project each is located in Chhattisgarh, Haryana, Gujarat, Karnataka, Kerala, and Odisha.

For the ongoing financial year (2024-25), NHAI had previously identified 33 highway stretches covering 2,741 km for monetisation. The Ministry of Road Transport and Highways (MoRTH) aims to generate ₹39,000 crore through various asset monetisation methods, including TOT, Infrastructure Investment Trusts (InvIT), and project-based financing. This revenue is intended to support infrastructure development, reduce financial burdens on the government, and attract private investment in the highway sector.

The TOT model involves leasing operational highways to private investors for a fixed period, allowing them to collect toll revenue while maintaining the roads. Meanwhile, InvITs function similarly to mutual funds, pooling investor capital into infrastructure projects that provide stable cash flows over time. Project-based financing, on the other hand, is tailored to attract long-term institutional investments.

With India’s growing infrastructure needs, NHAI’s monetisation strategy aligns with the broader goal of enhancing road connectivity, reducing congestion, and fostering economic growth. The initiative is also expected to improve road safety, boost regional trade, and create employment opportunities by accelerating infrastructure projects.

By providing diverse investment opportunities through TOT, InvIT, and project financing, NHAI ensures that both institutional and retail investors can participate in the country’s highway infrastructure expansion. These efforts are part of the Indian government’s larger push to modernize the transport sector, improve logistics efficiency, and drive sustainable economic development.

The monetisation of road assets is expected to enhance financial sustainability by attracting private investments while reducing dependency on public funds. This initiative will also accelerate infrastructure upgrades, leading to better road conditions, reduced travel time, and improved logistics for businesses. Moreover, efficient highways can significantly lower vehicle operating costs, benefiting both transporters and commuters.

Additionally, the funds generated from asset monetisation will be reinvested into new highway projects, supporting the government’s ambitious infrastructure goals under initiatives like Bharatmala Pariyojana. Strengthening road networks will not only boost trade and connectivity but also create job opportunities in construction, maintenance, and related sectors. As NHAI continues to innovate with flexible financing models, India moves closer to achieving world-class highway infrastructure that supports long-term economic growth.