Could NHAI Secure Rs 35,000-40,000 Crore from Road Assets in FY26?
Click to start listening
Synopsis
The National Highways Authority of India (NHAI) is on track to potentially generate Rs 35,000-40,000 crore in FY26 through timely monetization of road assets. This forecast represents a significant increase compared to previous years, highlighting the authority's evolving strategies in asset monetization.
Key Takeaways
- NHAI anticipates raising Rs 35,000-40,000 crore in FY26.
- Asset monetization strategies include TOT and InvIT.
- 53% of total monetization to date has come from TOT.
- 7,000 km of roads have been targeted for monetization.
- The median valuation multiple is 0.62 times.
New Delhi, Sep 17 (NationPress) The National Highways Authority of India (NHAI) is expected to raise Rs 35,000-40,000 crore in FY26 if the identified road assets are monetized promptly, according to a report released on Wednesday.
This projection is based on the median valuation multiple of 0.62 times observed across 10 awarded toll-operate-transfer (TOT) bundles within the last three years.
This figure represents a significant increase from the Rs. 24,399 crore monetized in FY2025. Additionally, it surpasses the budgeted monetization goal of Rs. 30,000 crore for FY2026, as per the report by the ratings agency ICRA.
“The NHAI has primarily employed two asset monetization strategies, namely TOT and Infrastructure Investment Trust (InvIT) since FY2019. Up to FY2025, the authority successfully raised Rs 92,633 crore through these mechanisms,” stated Vinay Kumar G, Sector Head, Corporate Ratings, ICRA.
The TOT method accounted for 53 percent of NHAI's total monetization from FY2019 to FY2025. Since its introduction in FY2022, InvIT's contribution has been steadily increasing in the last two years.
Since FY2023, NHAI has started releasing annual lists of assets slated for monetization.
“From FY2023 to FY2025, around 7,000 km of roads were announced for monetization, with approximately 2,000 km completed so far, and 1,170 km offered for sale through five TOT bundles. Furthermore, nearly 3,750 km remains to be monetized that was made available during this timeframe,” Kumar noted.
The NHAI has outlined a solid pipeline of projects designated for monetization, which includes the anticipated completion of five TOT bundles where bids have already commenced. Additionally, project stretches have been earmarked for transfer to the InvIT established by the NHAI.
According to ICRA’s analysis, the valuation multiple has fluctuated between 0.46 and 0.93 times across the 10 awarded TOT bundles over the last three years, with a median multiple of 0.62 times.
The average concession period stands at 20 years, while the toll collection history for the underlying assets varies from 4-15 years (with a median of 10 years).
Given this multiple, monetizing the currently identified assets, alongside TOT bundles and assets recognized in FY2026, could potentially yield Rs. 35,000-40,000 crore in FY2026, bringing the total monetization since inception to approximately Rs. 1.3 lakh crore.
“The National Monetisation Pipeline (NMP) set a goal of around Rs 53,366 crore with a total monetizable length of 8,894 km for FY2025, while the FY2025 Budget estimated a lower target of Rs. 30,000 crore,” Kumar concluded.
Point of View
It's crucial to recognize the NHAI's ongoing efforts to optimize asset monetization, which not only reflects sound financial management but also promises to enhance the country's infrastructure landscape. The projected figures for FY26 underline the authority's strategic planning and commitment to growth, a clear indication of progress in India's transportation sector.
NationPress
20/09/2025
Frequently Asked Questions
What is the expected revenue from NHAI's monetization in FY26?
NHAI is projected to generate Rs 35,000-40,000 crore from road asset monetization in FY26.
How does the TOT method contribute to NHAI's revenue?
The TOT method has accounted for 53% of NHAI's total monetization from FY2019 to FY2025.
What is the median valuation multiple for NHAI's assets?
The median valuation multiple observed is 0.62 times across the awarded TOT bundles.
What is the total monetization target set by the National Monetisation Pipeline?
The National Monetisation Pipeline has set a target of approximately Rs 53,366 crore for FY2025.
How many kilometers of roads are earmarked for monetization?
Approximately 7,000 km of roads were announced for monetization between FY2023 and FY2025.
