If realised, the estimated ₹350-400 billion would not only eclipse the ₹243.99 billion raised in FY2025, but also outpace the ₹300 billion monetisation target set for FY2026.
The National Highways Authority of India (NHAI) could potentially raise between ₹350 billion and ₹400 billion in FY2026 through timely monetisation of identified road assets, according to ratings agency ICRA. This projection is based on a median valuation multiple of 0.62x observed across ten awarded toll-operate-transfer (TOT) bundles over the past three years.
This would represent a significant improvement over the ₹243.99 billion monetised in FY2025, and would exceed the budgeted monetisation target of ₹300 billion for FY2026.
NHAI has outlined a robust pipeline of projects earmarked for monetisation, including five TOT bundles for which bidding has already commenced. Additionally, the authority plans to transfer select project stretches to its Infrastructure Investment Trust (InvIT).
Vinay Kumar G, Sector Head of Corporate Ratings at ICRA, noted, “Since FY2019, NHAI has primarily relied on two asset monetisation mechanisms—TOT and InvIT. The authority has raised ₹926.33 billion through these channels up to FY2025. Of this, TOT accounted for 53 per cent of total proceeds during FY2019-FY2025. InvIT, introduced in FY2022, has gained traction over the past two years.”
Since FY2023, NHAI has published annual lists of assets designated for monetisation. Between FY2023 and FY2025, around 7,000 km were announced for monetisation. Of these, approximately 2,000 km have been monetised, while an additional 1,170 km have been offered through five TOT bundles. Nearly 3,750 km remain to be monetised from the announced pool.
₹1.3 Trillion in Cumulative Proceeds
ICRA’s analysis shows that valuation multiples across the ten awarded TOT bundles have ranged from 0.46x to 0.93x, with a median of 0.62x. The average concession period has been 20 years, and toll collection histories for the underlying assets have ranged from four to fifteen years, with a median of 10 years. Based on these metrics, monetisation of existing and FY2026-identified assets could yield ₹350-400 billion in FY2026, taking cumulative proceeds since inception to approximately ₹1.3 trillion.
Addressing the lower-than-expected realisation in FY2025, Kumar added, “The National Monetisation Pipeline (NMP) had set a target of ₹533.66 billion with a total monetisable length of 8,894 km for FY2025, while the Union Budget projected a more conservative ₹300 billion. Of this, NHAI raised ₹66.61 billion through TOT Bundle 16 (252 km), and ₹177.38 billion via the fourth round of asset transfer to the NHAI InvIT (821 km), totalling ₹243.99 billion across 1,073 km.”
The deferment of awards under TOT Bundles 15, 17, 18, and 19 led to slippages against ICRA’s earlier estimate of ₹370-400 billion for FY2025.