NHAI Unveils Road Monetisation Plan for Next Year
The National Highways Authority of India (NHAI) has unveiled a preliminary list of 24 road assets that are set to be monetised in the 2025-26 financial year. This new move aims to generate substantial revenue for the government, with a projected total length of 1,472 km of highways contributing an estimated cumulative revenue of Rs 1,863 crore for the fiscal year 2023-24. The initiative marks a key phase in India’s broader infrastructure monetisation plan, which seeks to unlock value from existing road assets while maintaining sustainable development goals.
The NHAI, which operates under the Ministry of Road Transport and Highways (MoRTH), has opened the door for feedback from stakeholders regarding the list, offering an opportunity to revise and expand it to include other potential assets. According to the NHAI’s office order dated February 24, 2025, the projects are primarily located in Maharashtra, Jharkhand, Uttar Pradesh, West Bengal, Bihar, and Telangana, with additional stretches in Chhattisgarh, Haryana, Gujarat, Karnataka, Kerala, and Odisha.
In line with the government’s ambitious monetisation agenda, NHAI plans to utilise various modes of monetisation, including toll-operate-transfer (TOT), Infrastructure Investment Trusts (InvIT), and securitisation. The TOT model is the preferred approach, where the rights to collect fees from operational national highways are transferred to a concessionaire in exchange for an upfront lump-sum payment. This ensures that the revenue from these road assets can be utilised for further infrastructure development and road maintenance, contributing to the growth of India’s transportation network.In comparison to 2024-25, the target for 2025-26 is somewhat more conservative, with NHAI aiming to monetise 1,472 km of highways. In the previous financial year, the government identified 33 highway stretches spanning a total of 2,741 km for monetisation. The variation in numbers reflects a strategic shift to focus on maximising revenue from fewer but potentially more profitable road assets. The ongoing monetisation efforts align with the government’s goal of raising significant capital for infrastructure development while ensuring a smoother, more efficient experience for road users.
The Ministry of Road Transport and Highways (MoRTH) had set a target of raising Rs 39,000 crore in 2024-25 from asset monetisation, a goal it is steadily working towards. In a significant achievement, MoRTH signed a concession agreement for the monetisation of the TOT Bundle-16, covering 251 km, for Rs 6,661 crore in November 2024. This deal has already set a high benchmark for future monetisation agreements and is expected to pave the way for more successful projects.
In 2023-24, MoRTH raised a record Rs 40,314 crore through the monetisation of national highway assets, marking a significant milestone in the government’s infrastructure financing strategy. The funds generated from these projects are earmarked for further development of road infrastructure, with an emphasis on improving connectivity, safety, and sustainability.As NHAI continues to explore innovative monetisation methods, it is clear that road asset monetisation is set to play a crucial role in bridging India’s infrastructure funding gap.
With the aim to modernise the road network and increase revenue for the nation, these efforts could also help accelerate the country’s economic development, driving increased trade and connectivity across key regions. However, it remains essential that these initiatives are implemented with a focus on long-term sustainability, ensuring the projects contribute to zero-carbon, eco-friendly cities and regions.The NHAI’s monetisation plan signals not only a financial opportunity but also the government’s commitment to improving national infrastructure in a way that benefits the economy while adhering to sustainable practices. As the public and private sectors engage in this process, it will be interesting to see how this strategy evolves and how it shapes the future of India’s road network and urban development.
