In a significant move to attract private investment and reduce reliance on traditional funding sources, the National Highways Authority of India (NHAI) has released its first-ever Asset Monetisation Strategy for the Road Sector. The strategy aims to unlock the value of operational national highway assets and enhance Public-Private Partnership (PPP) participation across India’s road infrastructure.
The announcement was made via a press release by the Ministry of Road Transport and Highways, outlining how NHAI has already mobilised over ₹1.4 lakh crore through monetisation of more than 6,100 km of highways using mechanisms such as Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitisation.
The strategy is structured around three pillars:
- Value Maximisation of government-owned road assets,
- Transparency in processes and clear investor communication, and
- Market Development by expanding the investor base and encouraging stakeholder participation.
NHAI Chairman Santosh Kumar Yadav stated, “The unique approach that NHAI has adopted towards asset monetisation not only ensures financial sustainability but also opens opportunities for the private sector, leverage advanced technologies, enhance quality and longevity of our road assets.” He added that the strategy will ensure a steady flow of funds for future road development.
N.R.V.V.M.K. Rajendra Kumar, Member (Finance), NHAI, added, “This document outlines a strategic framework to maximise the benefits of asset monetisation. It emphasises the need for a structured approach to identify and value assets, ensuring transparency and fostering investor confidence.”
The monetisation blueprint supports the Government of India’s broader Asset Monetisation Plan 2025–30, reflecting a shift toward market-based, sustainable infrastructure funding. The full document is available on the NHAI website.
As a pioneer in adopting alternative financing, NHAI’s monetisation success is seen as critical to expanding the national highway network, while boosting investor engagement in India’s infrastructure growth story.
Asset monetisation by NHAI has unlocked significant capital—₹1.4 lakh crore mobilised from more than 6,100 km of national highways—but experts warn of risks that may affect public access and affordability in the long run.
While the strategy promises a sustainable capital pipeline and faster infrastructure development, policy experts have flagged concerns over public access and affordability. Chief among them is the risk of toll escalation under ToT contracts, which may disproportionately affect daily and lower-income commuters. Other flagged risks include aggressive revenue projections by concessionaires, skewed peak-hour tolling, and market exposure for retail investors in InvITs.
To mitigate these, experts recommend enforceable limits on toll increases, adoption of equitable tolling models, and rigorous oversight via digital monitoring tools like Road Asset Management Systems (RAMS). Additionally, safeguards such as transparent bidding, regulated valuation norms, and value-for-money evaluations are seen as crucial to ensuring that private capital does not come at the cost of public utility.
With the right regulatory guardrails, the monetisation blueprint could balance investor interest with long-term public benefit—providing a scalable model to finance India’s ambitious infrastructure targets.
