New Delhi, June 10, 2025: The National Highways Authority of India (NHAI), under the Ministry of Road Transport and Highways (MoRT&H), has released a comprehensive Asset Monetisation Strategy to optimise the economic potential of India’s national highway infrastructure. The strategy aims to attract private investment, improve operational efficiencies, and ensure sustainable funding for future infrastructure development.

In line with the government’s broader National Monetisation Pipeline, the strategy leverages three key models: Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvIT), and project-based securitisation. These mechanisms collectively seek to unlock value from existing assets and reinvest the proceeds into new highway development projects.

According to the document, NHAI has already raised ₹1.4 lakh crore through these models as of FY 2024-25. This includes ₹48,995 crore from monetising 2,564 km of roads through ToT, ₹43,638 crore from InvIT over 2,345 km, and ₹46,847 crore via securitisation of the Delhi-Mumbai Expressway project.

The strategy rests on three foundational pillars: value maximisation, transparency, and market development.

Under value maximisation, the authority has outlined a structured approach for asset identification, evaluation, bundling, and transaction execution. This includes creating a detailed asset register, conducting technical and traffic assessments, and ensuring fair valuation through the Free Cash Flow to Firm (FCFF) method.

Transparency is addressed through standardisation of documents and processes, public dissemination of investment-relevant data, and regular performance evaluations. An Asset Monetisation Cell within NHAI will serve as the central body for monitoring disclosures and engaging with investors.

To support market development, NHAI plans to expand its investor base by launching public InvITs and offering asset bundles of varying sizes to attract both institutional and retail investors. Notably, the authority is targeting the rollout of three ToT bundles per quarter and one to two InvIT phases annually. Risk-mitigation features, such as limiting concessionaire risk exposure to traffic variation, are designed to enhance investor confidence.

Speaking on the occasion, NHAI Chairman Santosh Kumar Yadav emphasised the transformative impact of asset monetisation. “This strategy provides us with a steady stream of financing, reducing our dependence on traditional budgetary allocations. More importantly, it enables us to bring in private sector efficiencies and innovations, thereby enhancing road quality and user experience,” he stated.

Member Finance NRVVMK Rajendra Kumar echoed this sentiment, highlighting that the strategy will streamline operations and foster investor trust through standardised procedures and greater transparency.

With a future pipeline of 1,472 km identified for monetisation in FY 2025-26, the document underscores NHAI’s commitment to creating a self-sustaining infrastructure ecosystem. By combining fiscal prudence with private participation, the strategy marks a significant step in India’s journey toward robust and resilient road infrastructure development.

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