Rating agency ICRA projects road monetization proceeds will exceed government's budgeted target of Rs 30,000 crore through toll-operate-transfer and infrastructure investment trust mechanisms.
17 Sep 2025 | 1399 Views | By Angitha Suresh
The National Highways Authority of India (NHAI) is projected to generate Rs 35,000-40,000 crore in FY2026 through the monetization of road assets, according to rating agency ICRA. The projection assumes timely monetization of identified assets and is based on median valuation multiples observed across recent transactions.
The projected amount ...
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The National Highways Authority of India (NHAI) is projected to generate Rs 35,000-40,000 crore in FY2026 through the monetization of road assets, according to rating agency ICRA. The projection assumes timely monetization of identified assets and is based on median valuation multiples observed across recent transactions.
The projected amount would exceed the government's budgeted monetization target of Rs 30,000 crore for FY2026 and represent a significant increase from the Rs 24,399 crore raised in FY2025. ICRA's estimates are based on a median valuation multiple of 0.62 times seen across 10 awarded toll-operate-transfer (TOT) bundles over the past three years.
NHAI has identified a pipeline of projects for monetization, including five TOT bundles with bidding processes already initiated. The authority also plans to transfer project stretches to its Infrastructure Investment Trust (InvIT), which was established as an alternative monetization mechanism.
Since FY2019, NHAI has utilized two primary asset monetization mechanisms: TOT and InvIT. Through these channels, the authority has successfully raised Rs 92,633 crore up to FY2025, with TOT accounting for 53 percent of total monetization during the FY2019-FY2025 period. InvIT was introduced in FY2022 and has expanded its share over the past two years.
Between FY2023 and FY2025, approximately 7,000 kilometers of road assets were announced for monetization. Of this, about 2,000 kilometers have been completed, while an additional 1,170 kilometers have been offered through five TOT bundles. Nearly 3,750 kilometers of assets made available during this period remain unmonetized.
The FY2025 monetization fell short of earlier projections due to delays in award processes. NHAI generated Rs 6,661 crore through TOT bundle 16 and Rs 17,738 crore via the fourth round of asset transfers to NHAI InvIT. The deferment of awards under TOT bundles 15, 17, 18, and 19 contributed to the shortfall against ICRA's prior estimate of Rs 37,000-40,000 crore for FY2025.
ICRA's analysis indicates that valuation multiples have ranged between 0.46 and 0.93 times across awarded TOT bundles over the last three years. The average concession period has been 20 years, with toll collection track records for underlying assets varying between four and 15 years.
If the projected monetization targets are achieved, NHAI's total asset monetization since inception could reach approximately Rs 1.3 lakh crore by the end of FY2026.