The government is reviving the Toll Operate Transfer (ToT) model with a focus on smaller, more attractive highway bundles.
Aimed at diversifying the investor base and improving capital inflows, the National Highways Authority of India (NHAI) is preparing to roll out packages valued at under ₹1,500 crore each, hoping to draw in new participants from both domestic and global markets. This renewed emphasis on ToT comes as part of a broader attempt to leverage India’s vast national highway network and transform it into a sustainable, revenue-generating asset base. With a fresh design geared toward maximising returns, the model is expected to work in tandem with India’s ambitious plans for green, climate-resilient infrastructure that supports economic and environmental sustainability.
The earlier iteration of the ToT framework had seen tepid response, largely due to the rise of the Infrastructure Investment Trust (InVIT) model, which many investors found more favourable in terms of returns and flexibility. However, the Ministry of Road Transport and Highways is now re-evaluating both monetisation mechanisms. A detailed comparative assessment is underway to determine the most viable path forward for long-term, eco-conscious infrastructure development. In the previous financial year, the largest ToT transaction was finalised with a Singapore-backed infrastructure trust securing a 251-kilometre stretch for approximately ₹6,661 crore. Under the agreement, the entity will be responsible for toll collection and routine maintenance for the next 20 years. Proceeds from such deals flow directly to the central government, which redistributes the capital to NHAI for fresh highway construction and the upkeep of existing corridors.
For FY 2024–25, the Centre has earmarked a ₹30,000 crore target from monetisation initiatives, with the potential to expand depending on market sentiment and investor appetite. These proceeds are vital for sustaining the country’s momentum in building inclusive, safe, and climate-aligned transport infrastructure. By reconfiguring the size and scale of assets up for bidding, authorities are aiming to level the playing field for a broader pool of investors, including mid-sized infrastructure funds and Indian institutional players. The new framework could particularly benefit regions where road connectivity remains underdeveloped, bringing in timely investments for transport equity and economic upliftment. This revamped approach also aligns with the country’s net-zero carbon commitments. With a well-maintained road network, India can reduce fuel wastage, enhance freight efficiency, and promote sustainable modes of transport, helping cities evolve into greener and more accessible spaces for all.
The policy rethink signals the government’s intent to not just raise capital but to do so in a way that serves wider public interest, economic equity, and environmental resilience. If implemented effectively, the refreshed ToT model could mark a significant step towards building a future-ready, inclusive, and eco-conscious transport infrastructure.
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