Rating agency ICRA predicts road monetisation at Rs. 35,000-40,000 crore in FY2026 if the National Highways Authority of India (NHAI) monetizes assets identified in a timely manner. This would be a significant improvement from the Rs. 24,399 crore monetised in FY2025 and exceed the budgeted target of Rs. 30,000 crore for FY2026. The NHAI has identified a robust pipeline of projects for monetisation, including the completion of five TOT bundles and the transfer of project stretches to the Invite. The valuation multiple for the 10 awarded TOT bundles has varied between 0.46 and 0.93 times over the last three years, with the median multiple being 0.62 times.
The total monetisation since inception is around Rs. 1.3 lakh crore. The National Highways Authority of India (NHAI) is set to achieve a significant milestone in the fiscal year 2025-26 by monetizing its operational road assets under the Toll-Operate-Transfer (TOT) model, aiming to raise between ₹35,000 and ₹40,000 crore. This ambitious plan represents a strategic shift in how the government leverages public infrastructure assets to fund further development while involving private sector efficiency in operational management. TOT is a model in which NHAI retains ownership of the highways, but the rights to collect toll revenues for a fixed period are transferred to private.
Investors The investors, in turn, bid competitively to operate these roads, paying an upfront amount to NHAI, which can then be reinvested in new infrastructure projects, highway maintenance, and other development initiatives. The move reflects India’s growing emphasis on asset monetization as a mechanism to accelerate infrastructure funding without adding to fiscal deficits. By unlocking the value of already operational highways, NHAI ensures that these critical assets continue to contribute to the nation’s development trajectory while generating significant financial returns for future investments According to leading rating agency (PPP) investor interest in TOT projects is expected.
To be strong, driven by stable cash flows, long-term contracts, and government backing. Both domestic and International investors, including private equity firms, infrastructure funds, banks, and corporates, are eligible to participate in these auctions, creating a competitive and transparent process that ensures NHAI maximizes revenue potential. The TOT model also aligns with the broader global trend of infrastructure monetization, where governments increasingly turn to private sector participation to efficiently manage operational assets and generate upfront capital. In India, the TOT initiative has already witnessed successful rounds of bidding in the past, setting benchmarks in terms of investor.
Participation and financial outcomes, making FY26 an even more critical year as NHAI aims for a record monetization target. The monetization plan underscores a pragmatic approach to balancing public ownership with private operational expertise, ensuring that the roads continue to serve citizens efficiently while generating long-term economic value One of the core benefits of the TOT model is the professional management of toll assets. While NHAI retains ownership, private investors assume responsibility for day-to-day operations, maintenance, and toll collection efficiency. This professionalization often leads to enhanced service standards, reduced operational risks.
And better road quality. By ensuring that highways are properly maintained, the TOT model contributes to smoother transportation, shorter travel times, and improved safety standards. It also allows NHAI to focus on expansion and development, while operational excellence is managed by entities motivated by the returns on their investments. The upfront revenue from TOT auctions serves as a crucial financing mechanism for ongoing and upcoming projects, allowing NHAI to avoid delays caused by budgetary constraints. This synergy between ownership and operational responsibility ensures that both the public interest and investor interests are aligned, fostering sustainable infrastructure management practices.
TOT monetization is intricately linked with India’s broader highway development initiatives, including flagship programs like Funds raised through TOT are expected to accelerate road construction, highway expansion, and regional connectivity projects, supporting economic growth and enhancing trade logistics. Improved connectivity facilitates faster movement of goods and people, boosts regional commerce, and strengthens supply chains across the country. With India aiming to become a global manufacturing and trade hub, the efficiency of road networks plays a crucial role in attracting investments and promoting industrial growth. The financial inflows from TOT auctions not only fund.
New projects but also ensure the maintenance of existing highways, which is critical for the longevity and reliability of the national road network. By integrating asset monetization with strategic infrastructure planning, NHAI is optimizing its resources and ensuring that national highways continue to meet growing transportation demands From an investment perspective, TOT projects offer a unique combination of stable returns and manageable risk. Long-term contracts with fixed tenures provide predictable revenue streams, making these assets attractive for institutional investors such as pension funds, insurance companies, and infrastructure trusts The model also reduces fiscal.
Pressure on the government while creating opportunities for private capital deployment in public infrastructure. Experts note that TOT monetization is an innovative way to balance public finance limitations with the urgent need for infrastructure growth. As India experiences rapid urbanization and increased vehicular movement, the demand for well-maintained, efficient highways will only grow, enhancing the investment value of TOT-managed assets. The transparent bidding process and government guarantees further enhance investor confidence, positioning TOT as a transformative approach to infrastructure financing in India TOT monetization also has significant socio-economic.
Implications Efficient highways reduce travel time, improve road safety, and facilitate regional development, ultimately contributing to economic productivity. By mobilizing private investment for highway management, TOT ensures that infrastructure quality is maintained without placing the burden solely on public finances. The revenues generated are often redirected to other critical areas of development, including rural connectivity, urban infrastructure projects, and strategic highway expansions. Additionally, by attracting both domestic and foreign investors, TOT promotes knowledge transfer, introduces global best practices in infrastructure management, and strengthens India’s.
Credibility as a favourable investment destination. This holistic approach to monetization demonstrates how innovative financial models can align economic objectives with public service goals, creating a win-win scenario for all stakeholders involved The TOT initiative is not only about revenue generation but also about long-term strategic planning. By monetizing operational highways, NHAI sets a precedent for leveraging public assets to fund future development sustainably. The model encourages responsible asset management, accountability, and continuous improvement, as private operators have a vested interest in maintaining high standards to ensure profitability over.
The tenure of the contract. It also encourages innovation in toll collection systems, digital monitoring, and road maintenance technologies, which further enhances the efficiency and sustainability of highway infrastructure. Internal links can point to (NHAI) to provide readers with actionable resources and deeper insights into ongoing and upcoming highway initiatives By FY26, the TOT model is expected to become a cornerstone of NHAI’s financing strategy, providing a reliable, repeatable mechanism for monetizing assets while fostering private sector participation. The approach is likely to inspire similar models across other infrastructure sectors, including airports.
Ports, and urban transit systems. As India continues its journey toward becoming a global economic powerhouse, the monetization of operational highways through TOT represents an important step in creating sustainable, efficient, and investor-friendly infrastructure frameworks. With strong policy support, transparent procedures, and a growing appetite for infrastructure investment, NHAI’s TOT plan exemplifies a forward-looking approach to building the highways of the future while ensuring immediate financial and operational gains.
q1. What is the TOT model in NHAI?
The Toll-Operate-Transfer (TOT) model allows private investors to bid for the right to operate existing toll roads for a fixed period while NHAI retains ownership. This provides upfront revenue for NHAI to fund new infrastructure projects.
q2. How much revenue is expected from TOT in FY26?
NHAI aims to raise ₹35,000-40,000 crore through the TOT monetization of its road assets.
q3. Who are eligible to participate in TOT auctions?
Domestic and international private sector investors, including infrastructure funds, banks, and corporates, can participate in the TOT bidding process.
q4. What are the benefits of TOT monetization?
TOT allows NHAI to unlock the value of operational highways, ensures professional management of toll assets, accelerates highway expansion, and reduces fiscal pressure on the government.
q5. How is investor confidence ensured in TOT projects?
Stable cash flows, long-term contracts, and government backing provide risk mitigation, making TOT projects attractive to investors.
