NHAI Expected to Raise Rs 35,000–40,000 Crore from Road Asset Monetization in FY2026

The National Highways Authority of India is expected to raise between Rs 35,000 and 40,000 crore from road asset monetization in the fiscal year 2026. This projection, if realised, would surpass the government’s budgeted target of Rs 30,000 crore for the year, reflecting a significant improvement over the Rs 24,399 crore monetized in FY2025.

According to ICRA limited, the projected proceeds are based on the median valuation multiple of 0.62 times observed across 10 awarded toll-operate-transfer bundles over the last three years. The NHAI has identified a robust pipeline of projects earmarked for monetization, including the estimated completion of five TOT bundles with bids already initiated, as well as the planned transfer of project stretches to the infrastructure investment trust established by the authority.

Vinay Kumar G, Sector Head, Corporate Ratings, ICRA, said: “The NHAI has predominantly utilised two asset monetization mechanisms, namely TOT and InvIT since FY2019. The authority has successfully raised Rs 92,633 crore through these channels up to FY2025. The TOT method generated 53% of NHAI’s total monetization during FY2019-FY2025. InvIT, introduced in FY2022, has seen its share expand over the past two years. Since FY2023, NHAI has begun publishing annual lists of assets designated for monetization. Between FY2023 and FY2025, approximately 7,000 km were announced for monetization, of which about 2,000 km have been completed to date, and an additional 1,170 km have been offered for sale through five TOT bundles. Moreover, NHAI is yet to monetize nearly 3,750 km that were made available for sale during this period.”

ICRA’s analysis indicates that the valuation multiple has ranged between 0.46 and 0.93 times across the 10 awarded TOT bundles over the past three years. The average concession period for these projects has been 20 years, with toll collection records spanning 4 to 15 years, and a median of 10 years. Based on these multiples, monetization of the existing identified assets, along with new TOT bundles and assets identified in FY2026, could potentially generate Rs 35,000 to 40,000 crore, bringing total monetization since inception to around Rs 1.3 lakh crore.

Commenting on the lower monetization realisation for FY2025, Kumar stated: "The National Monetization Pipeline set a target of approximately Rs 53,366 crore with a total monetizable length of 8,894 km for FY2025, whereas the FY2025 Budget projected a lower figure of Rs 30,000 crore. Of this amount, NHAI generated Rs 6,661 crore through the monetization of the TOT bundle 16 (252 km), and Rs 17,738 crore via the fourth round of asset transfer to the NHAI InvIT (821 km), amounting to Rs 24,399 crore in proceeds and a cumulative length of 1,073 km during FY2025. The deferment of awards under TOT bundles 15, 17, 18, and 19 resulted in slippages against ICRA’s prior estimate of Rs 37,000 to 40,000 crore for FY2025."

In conclusion, NHAI’s road asset monetization in FY2026 is poised to exceed expectations, with projected proceeds of Rs 35,000 to 40,000 crore, surpassing the budgeted target of Rs 30,000 crore. Leveraging its robust pipeline of TOT and InvIT projects, the authority is set to strengthen its monetization track record, building on past successes and bringing total proceeds since inception to around Rs 1.3 lakh crore. This outlook underscores NHAI’s growing capability to efficiently unlock value from its road assets.

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