NHAI Unveils ₹1.4 Lakh Cr Asset Monetisation Strategy to Power India’s Highway Growth

India’s national highways are in for a transformation with the National Highways Authority of India (NHAI) having launched an overarching Asset Monetisation Strategy, which has so far unlocked ₹1.4 lakh crore through private finance models. The program looks to raise long-term financing for infrastructure growth while improving operational efficiency and investor confidence.

The plan, from the Centre’s National Monetisation Pipeline, depends on three models: Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvIT), and project securitisation. Up to FY 2024-25 till now, NHAI raised ₹48,995 crore by monetising 2,564 km of highways under ToT, ₹43,638 crores from InvITs for 2,345 km, and ₹46,847 crores from the securitisation of the Delhi-Mumbai Expressway.

For optimal returns, NHAI developed a systemic methodology of asset valuation, including the compilation of an overall asset register, technical as well as traffic studies, and reasonable valuation following the Free Cash Flow to Firm (FCFF) approach.

Transparency and investor trust are central to the plan. NHAI has standardised documents and transaction processes, launched a dedicated Asset Monetisation Cell, and committed to regular disclosures and performance reviews. The authority is also looking to expand its investor base by launching public InvITs and bundling assets in various sizes to suit institutional and retail investors.

Going forward, NHAI aims to roll out three ToT bundles every quarter and 1–2 InvIT phases annually. Risk-mitigation features including limited exposure to traffic-related revenue fluctuations—have been introduced to make projects more investor-friendly.

“This monetisation strategy provides a sustainable financing model and brings in private sector efficiency to improve road quality and user experience,” said NHAI Chairman Santosh Kumar Yadav.

Member Finance NRVVMK Rajendra Kumar added that the approach would streamline operations and boost investor confidence through consistent procedures and greater transparency.

For FY 2025-26, another 1,472 km of highway assets have been identified for monetisation. NHAI’s strategy represents a significant shift towards self-reliant, high-quality road infrastructure powered by private capital and innovation.