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The National Highways Authority of India (NHAI) is expected to generate between INR 35,000 crore and INR 40,000 crore in the fiscal year 2025-26 through the monetisation of road assets, according to ICRA. This projection surpasses the INR 30,000 crore target set for the year. The funds are anticipated to come from Toll-Operate-Transfer (TOT) and Infrastructure Investment Trust (InvIT) mechanisms, contributing to a cumulative total of approximately INR 1.3 lakh crore since FY2019.
The National Highways Authority of India (NHAI) is on track to achieve road asset monetisation proceeds between INR 35,000 crore and INR 40,000 crore in the fiscal year 2025-26, as projected by rating agency ICRA. This estimate surpasses the INR 30,000 crore target outlined in the Union Budget for the year. Advertisement
ICRA's forecast is based on the timely monetisation of assets identified by NHAI, including the completion of five Toll-Operate-Transfer (TOT) bundles for which bids have already been invited. Additionally, NHAI plans to transfer certain project stretches to its Infrastructure Investment Trust (InvIT).
Since the inception of its monetisation strategy in FY2019, NHAI has raised a cumulative INR 92,633 crore through TOT and InvIT mechanisms. The TOT method accounted for 53% of this total, while InvIT, introduced in FY2022, has seen an expanding share over the past two years.
Between FY2023 and FY2025, NHAI announced approximately 7,000 km of assets for monetisation. Of these, about 2,000 km were completed, and 1,170 km were offered through five TOT bundles. Currently, around 3,750 km of assets remain to be monetised.
Valuation multiples for these assets have ranged between 0.46 and 0.93 times across 10 awarded TOT bundles in the past three years, with a median of 0.62 times. The average concession period has been 20 years, with toll collection records spanning from four to 15 years.
In the fiscal year 2024-25, NHAI generated INR 24,399 crore through asset monetisation, falling short of the INR 30,000 crore target. This shortfall was attributed to the deferment of awards under certain TOT bundles. Despite this, the cumulative monetisation since FY2019 stands at approximately INR 1.3 lakh crore.
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