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On track to achieve ₹30,000 crore in road monetisation: NHAI

March 30, 2026 3 min read Economics GS3
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What Happened

  • The National Highways Authority of India (NHAI) has mobilised ₹28,307 crore in FY26 through a combination of Infrastructure Investment Trust (InvIT) and Toll-Operate-Transfer (TOT) mechanisms, putting it on track to meet the ₹30,000 crore annual target.
  • Rating agency ICRA has projected total road monetisation at ₹35,000–40,000 crore in FY26 if the identified assets are monetised in time, potentially exceeding the target.
  • NHAI has identified approximately 24 operational road assets spanning around 1,472 km for monetisation during the fiscal, primarily through TOT bundles and InvITs.
  • The Raajmarg Infra Investment Trust (RIIT), the new public InvIT, received SEBI's in-principle approval and brought in equity participation from SBI, PNB, NaBFID, Axis Bank, HDFC Bank, ICICI Bank, and others.
  • Cumulatively since FY2019, NHAI has mobilised close to ₹1 lakh crore through TOT and InvIT mechanisms combined.

Static Topic Bridges

National Highways Authority of India (NHAI) and Its Mandate

NHAI was constituted by the National Highways Authority of India Act, 1988, under the Ministry of Road Transport and Highways. It is responsible for the development, maintenance, and management of national highways in India.

  • NHAI Act, 1988: Empowers NHAI to levy and collect fees (tolls) and to enter into agreements with private entities for highway development and management.
  • NHAI finances highway development through market borrowings, budgetary support, and increasingly, asset monetisation.
  • As of FY26, India's national highway network exceeds 1.46 lakh km, with NHAI managing a substantial share.
  • NHAI's debt burden from Bharatmala Phase-I has necessitated aggressive monetisation to recycle capital.

Connection to this news: The ₹30,000 crore monetisation target is part of NHAI's strategy to reduce its balance sheet debt while generating funds for fresh highway construction.

Infrastructure Investment Trusts (InvITs) and SEBI Regulation

InvITs are pooled investment vehicles regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Infrastructure Investment Trusts) Regulations, 2014. They allow direct investment by individuals and institutions into operational infrastructure assets.

  • InvITs must distribute at least 90% of net distributable cash flows as dividends to unit holders, making them yield instruments.
  • Two types: Private InvITs (restricted to institutional/sophisticated investors) and Public InvITs (listed on stock exchanges, open to retail investors).
  • Raajmarg InvIT is NHAI's public InvIT — the first to open highway assets to retail investors.
  • InvITs recycle capital: the sponsor (NHAI) transfers operational assets to the trust, receives upfront consideration, and uses funds for new construction.
  • NHAI's Private InvIT has already raised ₹43,638 crore across four rounds (FY19–FY25).

Connection to this news: The ₹28,307 crore mobilised in FY26 includes proceeds from both the private InvIT and the newly structured public InvIT, demonstrating NHAI's deepening use of capital market instruments for infrastructure financing.

Toll-Operate-Transfer (TOT) Model and National Monetisation Pipeline (NMP)

The TOT model allows private concessionaires to pay NHAI an upfront lump-sum amount for the right to collect toll revenues from an existing, publicly funded highway stretch for a defined concession period (typically 30 years).

  • First TOT bundle was awarded in 2018; NHAI has since awarded multiple TOT bundles, raising ₹48,995 crore cumulatively through FY25.
  • The National Monetisation Pipeline (NMP), launched in August 2021, targets ₹6 lakh crore in asset monetisation across infrastructure sectors (roads, railways, power, telecom) over FY22–FY25.
  • Roads sector, managed by NHAI, accounts for the largest share of NMP: ₹1.6 lakh crore target over the NMP period.
  • TOT does not transfer ownership — the highway asset remains with NHAI/government; only revenue collection rights are leased.
  • TOT generated 53% of NHAI's total monetisation proceeds during FY19–FY25.

Connection to this news: The FY26 ₹30,000 crore target is part of India's broader NMP framework; NHAI's near-achievement of this target in a single year signals the model's financial viability and investor confidence in Indian highway assets.

Key Facts & Data

  • FY26 NHAI monetisation target: ₹30,000 crore
  • Mobilised as of report: ₹28,307 crore (via InvIT + TOT)
  • ICRA projection for full FY26: ₹35,000–40,000 crore
  • Cumulative monetisation since FY2019: ~₹1 lakh crore (TOT + InvIT)
  • TOT cumulative: ₹48,995 crore; Private InvIT: ₹43,638 crore (4 rounds)
  • Assets identified for FY26: ~24 road assets, ~1,472 km
  • NMP roads target (FY22–FY25): ₹1.6 lakh crore
  • SEBI InvIT Regulations: 2014; mandatory distribution to unit holders: 90% of net distributable cash flows
  • NHAI Act year: 1988; Ministry: Road Transport and Highways