The Indian government is set to monetize 28 national highway assets, covering more than 1,800 kilometers, during the financial year 2026-27. This strategic move is projected to generate approximately ₹35,000 crore, according to recent reports citing government officials.
The National Highways Authority of India (NHAI) has identified specific stretches for this monetization effort. Haryana is noted to have the highest number of identified assets, with Uttar Pradesh following closely.
Funding New Infrastructure Development
This initiative is a crucial component of the government's broader strategy to recycle existing infrastructure assets. The funds raised will be reinvested into developing new infrastructure projects across the country, fostering economic growth and improving connectivity.
Monetization will primarily occur through a combination of mechanisms:
- Public and Private Infrastructure Investment Trusts (InvITs): These trusts allow various investors to collectively invest in infrastructure projects, providing a stable return.
- Toll-Operate-Transfer (TOT) Route: Under this model, operational highway stretches are leased to private entities for a fixed period in exchange for an upfront payment, with the private entity managing and collecting tolls.
The plan prioritizes the monetization of Hybrid Annuity Model (HAM) assets. These are favored due to their lower capital expenditure risk compared to other project types, making them more attractive for investors.
Part of a Larger National Pipeline
The FY27 monetization plan is integrated into the National Monetisation Pipeline 2.0, which was launched in February. This comprehensive pipeline aims to achieve a total monetization value of ₹4.42 lakh crore for the highway sector over five years, from FY26 to FY30.
This year's pipeline also includes two build-operate-transfer (BOT) projects and seven engineering, procurement, and construction (EPC) projects. The government's decision to permit sovereign wealth funds and pension funds to directly invest in greenfield toll road projects further supports these monetization efforts.
In the preceding financial year, 2025-26, the road ministry's monetization receipts stood at ₹29,000 crore. Earlier this year, the ministry successfully raised over ₹9,000 crore through its first public InvIT, by monetizing five highway sections spanning more than 260 km across four states.