NHAI launches first-ever asset monetisation strategy for road sector

NHAI has released its first Asset Monetisation Strategy, which outlines a structured strategy to unlocking highway asset value through ToT, InvITs, and securitisation, with the goal of increasing private investment and long-term funding.

To unlock the value of operational National Highway assets and enhance Public Private Partnership in India’s infrastructure development, the National Highways Authority of India (NHAI) today unveiled its first-ever ‘Asset Monetisation Strategy for the Road Sector’. The plan gives a structured framework that provides a strong blueprint for capital mobilisation via Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitisation models. These instruments have allowed NHAI raise approximately 1.4 lakh crore across over 6,100 km of National Highways via the National Monetisation Pipeline.

The plan is built on three key pillars: maximising the value of government road assets, ensuring transparency in processes and the dissemination of investor-relevant information, and promoting market development through an increased investor base and stakeholder involvement.

Commenting on the release of the strategy document, NHAI Chairman Shri Santosh Kumar Yadav says, “The unique approach that NHAI has adopted towards asset monetisation not only ensures financial sustainability but also opens opportunities for the private sector, leverages advanced technologies, enhances the quality and longevity of our road assets. The successful implementation of this strategy will provide NHAI with a steady stream of financing, reducing our reliance on traditional funding sources”.

Sharing his thoughts on the occasion, Shri N.R.V.V.M.K. Rajendra Kumar, Member Finance, NHAI, says,
“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.”

NHAI Asset Monetisation strategy aligns with the Government of India’s objective under the Assets Monetisation Plan – 2025-30 and represents a pivotal shift towards sustainable, market-driven infrastructure financing. The strategy document is available on the NHAI website: https://nhai.gov.in/nhai/sites/default/files/mix_file/Asset-Monetization_Strategy_Document.pdf

As an early adopter of alternative funding mechanisms, NHAI has effectively leveraged a variety of monetisation tools. The performance of NHAI’s asset monetisation is crucial in unlocking the value of the road network and has helped to shape the country’s National Highway framework.

Source: PIB