NHAI Targets Rs 54,000 Crore with Monetisation of 86 Highway Stretches
NHAI Identifies 86 National Highway Stretches for Monetisation
The National Highways Authority of India (NHAI) has set an ambitious target to raise Rs 54,000 crore in the fiscal year 2025 by monetising road assets, including 86 stretches of national highways with a combined length of approximately 4,912 km. This move is part of the government’s broader strategy to manage public finances, fund new infrastructure projects, and address the growing debt burden faced by NHAI.
As of December 2024, NHAI’s total debt stood at around Rs 2.76 lakh crore. To alleviate this financial pressure and fuel further growth, the authority plans to utilise the monetisation of existing road assets as a key revenue stream. The focus on monetising road infrastructure follows the successful implementation of the Toll-Operate-Transfer (TOT) model, which allows private entities to lease highway assets for long-term operation and maintenance, providing both immediate capital and long-term returns. Under the TOT model, highway assets are leased to private players who are granted the right to operate, maintain, and collect tolls for a period of 15 to 30 years. In exchange, the private operator pays a one-time, upfront concession fee to the government. This fee can be used to fund the construction of new highways and repay existing debts. It also allows the government to maintain control over the infrastructure, while the private sector takes responsibility for its management and operational costs. This approach has been successful in the past, with five highway stretches previously monetised under earlier bundles. These included stretches 11, 12, 13, 14, and 16. NHAI has now set its sights on a larger pool of highway stretches, with 86 stretches identified as part of the monetisation drive for 2025. The total length of these identified stretches—covering approximately 4,912 km—will provide a substantial revenue boost for NHAI and enable the authority to make significant progress in reducing its debt. As part of the broader strategy, NHAI aims to complete the monetisation of these highways by the end of the current financial year, with an additional three stretches expected to be awarded contracts soon.
Achievements and Progress to Date
NHAI has already achieved considerable progress in its monetisation efforts. In September 2024, Highways Infrastructure Trust secured the contract for TOT Bundle 16, marking a significant step forward in the ongoing monetisation programme. This success has spurred further interest from private investors and contractors, paving the way for the additional stretches identified for monetisation in 2025. By leveraging the expertise of private entities in maintaining and operating highways, NHAI hopes to improve the quality of road infrastructure while simultaneously generating funds for future projects. These funds will not only help in reducing the organisation’s outstanding debt but will also contribute to the expansion of India’s road network, thereby promoting economic growth and enhancing connectivity across the country.
The Importance of Highway Monetisation
Highway monetisation is a critical component of India’s infrastructure development strategy. With increasing traffic congestion and the growing need for upgraded infrastructure, the government has sought innovative ways to finance the expansion and maintenance of national highways. The monetisation model allows for the recycling of capital, where funds raised from the operation of existing highways are reinvested into new projects. Additionally, the involvement of private sector players brings in new technologies and operational efficiencies, ultimately improving the quality of road networks across the country. The revenue generated through tolls also helps to ensure that highways are well-maintained, reducing the burden on public finances.
Looking to the future, NHAI plans to continue its efforts to monetise more stretches of the national highway network. The 86 stretches identified for fiscal year 2025 represent just the beginning of a larger initiative to leverage India’s vast road infrastructure for long-term economic benefits. Through this monetisation programme, NHAI is expected to make significant strides in repaying its debt, financing the expansion of India’s road network, and improving the quality of transportation for millions of commuters across the country. NHAI’s focus on monetising highway stretches through the TOT model is a strategic step towards balancing debt reduction with infrastructure growth. The success of this approach will be key to supporting India’s ambitious transportation goals in the coming years, ensuring that the nation’s road infrastructure can meet the demands of an increasingly mobile population while fostering economic growth.
