NHAI Moves Forward with Road Asset Monetisation Strategy

NHAI Moves Forward with Road Asset Monetisation Strategy

The National Highways Authority of India (NHAI) has revealed its ambitious plan to monetise 24 road projects in 2025-26, totalling a distance of 1,472 km. This initiative is poised to generate an estimated annual revenue of Rs 1,863 crore for the financial year 2023-24. As part of the government’s ongoing push to tap into infrastructure assets, this monetisation will not only boost NHAI’s fiscal position but also provide a fresh avenue for private investment in the country’s road infrastructure.

The identification of these 24 road assets forms a key component of the NHAI’s broader strategy to unlock the value of under-utilised road infrastructure. These assets are expected to be monetised through the toll-operate-transfer (TOT) model, a popular method that has gained traction in recent years. In this arrangement, the rights to operate and collect tolls from highways are transferred to private entities, providing NHAI with upfront capital while allowing private investors to manage the roads for a specified period.
Feedback on the identified projects is being actively sought from stakeholders, with the authority open to revising its asset list if necessary to make it more inclusive. NHAI’s office order dated February 24, 2025, noted that the list was still tentative, allowing room for suggestions and additional projects to be considered before finalising the monetisation strategy.

These 24 roads are spread across multiple states, with significant projects in Maharashtra (five), Jharkhand (four), Uttar Pradesh (three), and others across West Bengal, Bihar, Telangana, and various other states. This geographical spread is designed to ensure the monetisation of assets in diverse regions, addressing the unique needs of different states while contributing to overall national infrastructure development. NHAI’s plans for the next financial year also build upon the momentum of the 2024-25 fiscal, where 33 road projects with a combined length of 2,741 km were identified for monetisation. In total, the Ministry of Road Transport and Highways (MoRTH) aims to raise Rs 39,000 crore through the monetisation of highway assets this year, with various models like InvITs (Infrastructure Investment Trusts) and project-based financing also in the mix.

This asset monetisation strategy is part of a broader governmental push to address India’s infrastructure financing needs. Through these schemes, NHAI is not only improving road quality but also creating opportunities for investors to fund high-potential infrastructure projects. InvITs, designed to pool capital from investors, are another method being explored to provide long-term returns from highway infrastructure.
The move is part of an ongoing effort to enhance the quality of road networks across India, create new revenue streams for the government, and ensure the financial viability of projects that would otherwise require direct government expenditure. With these measures, NHAI hopes to continue making strides in transforming India’s roadways into world-class assets that can attract both domestic and international investment.
As India accelerates its infrastructure growth, this monetisation strategy will be watched closely by both investors and stakeholders in the public sector, as it has the potential to reshape the future of Indian road infrastructure financing and contribute significantly to the nation’s economic development.