NHAI Finalises Major Highway Portfolio for Monetisation in FY27

The National Highways Authority of India (NHAI) has prepared a comprehensive list of 17 highway projects covering a total length of 1,692.5 kilometres for monetisation during the financial year 2026-27. This initiative is projected to generate around ₹30,000 to ₹35,000 crore through established models such as Toll-Operate-Transfer (TOT) and Infrastructure Investment Trusts (InvITs).

These assets are distributed across nine states — Haryana, Uttar Pradesh, Rajasthan, Karnataka, Tamil Nadu, Telangana, Jharkhand, Bihar, and Maharashtra. The selection focuses on operational stretches that have demonstrated consistent traffic and revenue potential, ensuring attractiveness for investors while allowing NHAI to recycle capital efficiently.

Over the past three financial years (FY2023-24 to FY2025-26), NHAI has monetised approximately ₹85,749 cr. (Shutterstock representative photo) | Hindustan Times

Monetisation Approach and Strategy

NHAI’s monetisation programme involves transferring the rights to operate, maintain, and collect tolls on mature highway assets to private entities or investment trusts for a defined concession period, typically ranging from 15 to 30 years. In return, the authority receives a significant upfront payment that can be redirected towards developing new infrastructure projects.

This latest list of projects will be pursued independently of NHAI’s dedicated public vehicle, the Raajmarg Infra Investment Trust (RIIT). Launched earlier in 2026, RIIT has already made a successful market debut and continues to serve as a specialised platform for asset recycling.

The strategy emphasises brownfield assets — fully operational highways with proven track records — which helps de-risk investments and provides stable, inflation-linked returns to participants.

Strong Performance in Recent Years

NHAI has built considerable momentum in asset monetisation over the past few years. In FY26, the authority raised approximately ₹28,300 crore through a combination of TOT bundles and InvIT rounds. Cumulative proceeds from the roads sector in the last three financial years have exceeded ₹85,000 crore, reflecting growing confidence among domestic and international investors.

The successful listing of RIIT in March 2026, which opened at a premium, further underscores the market’s positive reception to Indian highway assets. With a high credit rating and diversified portfolio, such vehicles have broadened the investor base to include pension funds, insurance companies, and long-term institutional players.

Alignment with National Monetisation Pipeline 2.0

This FY27 push forms an integral part of the government’s National Monetisation Pipeline (NMP) 2.0, which aims to unlock ₹16.72 lakh crore from public assets across multiple sectors between FY26 and FY30. The roads sector is expected to contribute a substantial ₹4.42 lakh crore during this period, making it the largest component of the overall plan.

The approach supports India’s broader infrastructure goals by mobilising private capital, reducing fiscal burden, and accelerating the expansion and maintenance of the national highway network. Proceeds from these transactions are typically utilised for constructing new expressways, upgrading existing corridors, and enhancing overall connectivity.

The MGMM Outlook 

NHAI’s decision to monetise 17 operational highway projects across multiple states highlights the government’s growing focus on building a self-sustaining infrastructure financing ecosystem. By leveraging mature highway assets through models like Toll-Operate-Transfer (TOT) and Infrastructure Investment Trusts (InvITs), the authority is creating a steady flow of capital that can be reinvested into new expressways, corridor upgrades, and connectivity projects. This strategy reflects a shift from traditional funding dependence towards a more market-driven approach that encourages long-term private sector participation in India’s infrastructure growth story.

The continued success of highway monetisation also signals increasing investor confidence in India’s transport sector, particularly in operational brownfield assets that offer predictable traffic and revenue generation. With strong momentum from recent monetisation rounds and the expansion of the National Monetisation Pipeline 2.0, the roads sector is emerging as a key pillar of economic development. The initiative not only supports faster infrastructure expansion but also strengthens logistics efficiency, regional connectivity, and overall economic competitiveness across the country.

(Sources: Hindustan Times, The Hindu BusinessLine, Economic Times)