New Delhi, March 25, 2025 – In a significant step toward infrastructure financing, the National Highways Authority of India (NHAI) has finalised a list of 1,692.5 kilometres of operational highway stretches for monetisation in the financial year 2026-27, targeting a revenue mobilisation of approximately ₹30,000 crore. The move is part of the government’s broader strategy to recycle capital and fund new road construction without burdening the exchequer.
Monetisation Through Toll-Operate-Transfer (TOT) Model
The identified highway assets will be monetised primarily through the Toll-Operate-Transfer (TOT) model, under which NHAI auctions the right to collect tolls on completed stretches to private investors for a fixed period, typically 15 to 30 years. In return, NHAI receives an upfront lump sum payment, which is then reinvested into the national highway development programme.
Officials familiar with the development confirmed that the list includes stretches across multiple states, covering both high-traffic corridors and key arterial routes. “The selection has been finalised based on traffic density, operational history, and residual concession life,” a senior NHAI official said, speaking on condition of anonymity.
Strategic Shift in Infrastructure Financing
The monetisation push aligns with the government’s National Monetisation Pipeline (NMP), which aims to unlock value from mature public assets. For NHAI, the FY27 target of ₹30,000 crore marks a substantial increase compared to previous years, reflecting growing investor confidence in India’s toll-road sector.
In FY25, NHAI raised over ₹20,000 crore through TOT bundles and Infrastructure Investment Trusts (InvITs). For FY26, the authority has set an internal target of ₹25,000 crore. The FY27 plan, therefore, represents a consistent upward trajectory in asset recycling.
“The NHAI has steadily refined its asset valuation and bidding processes. The longer concession periods and improved traffic data have attracted both domestic and international investors,” said a transport infrastructure analyst based in Mumbai.
Asset Details and Investor Interest
While NHAI has not publicly disclosed the full list of stretches, sources indicate that it includes sections of the Golden Quadrilateral, East-West Corridor, and several newly completed expressways. The average concession period for these bundles is expected to be around 20 to 25 years, with annual toll escalation clauses tied to the Wholesale Price Index (WPI).
The move comes at a time when global infrastructure funds, including Canada Pension Plan Investment Board (CPPIB), Macquarie Group, and several Middle Eastern sovereign wealth funds, have expressed interest in expanding their Indian road portfolios. The stable, inflation-linked returns offered by Indian toll roads have made them attractive assets.
Timeline and Next Steps
NHAI plans to float the first tender for the FY27 monetisation programme in the second quarter of the current financial year (July-September 2025). Detailed project reports and traffic studies for each stretch are being prepared. The authority will also seek in-principle approval from the Ministry of Road Transport and Highways before issuing requests for quotation.
“The monetisation programme is not just about revenue; it is about efficiency. Private operators often bring better toll collection technology and road maintenance, improving user experience,” the official added.
Conclusion
The finalisation of the 1,692.5 km highway list for FY27 monetisation underscores NHAI’s commitment to fiscal prudence and infrastructure growth. By recycling ₹30,000 crore from operational assets, the authority can fund new projects in underserved regions, reduce its reliance on budgetary support, and maintain the momentum of India’s road expansion drive. As the tenders roll out, investor appetite will be a key indicator of the programme’s success in the coming months.