NHAI Launches First-Ever Asset Monetization Strategy Document

In a significant move aimed at strengthening alternative infrastructure financing and accelerating private sector participation, the National Highways Authority of India (NHAI) has unveiled its first-ever Asset Monetization Strategy for the Road Sector via press release dated June 9, 2025. As part of this initiative, NHAI will also establish a comprehensive Asset Register, a key step to increase transparency and attract investments into India’s growing highway network.

The strategy outlines a structured framework to mobilize capital through Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitization models. These instruments, already deployed under the National Monetization Pipeline (NMP), have helped NHAI raise over ₹1.4 lakh crore across more than 6,100 km of national highways. Their continued success is expected to further bolster investor confidence and enable smoother financing for future infrastructure projects.

The Asset Register, as outlined in the strategy, will provide detailed technical and financial data on highway stretches identified for monetization. It will help investors assess the viability of assets based on criteria such as:

1. Age and type of highway stretch;
2. Historic revenue growth and cash flow potential;
3. Number and positioning of toll plazas;
4. Legal compliance and arbitration history;
5. Revenue potential based on traffic estimates; and
6. Capacity augmentation requirements, if any.

A 360-degree field-level evaluation will also be conducted to determine current asset quality, traffic-based revenue potential, and any capacity enhancement needs.

The Asset Monetization Strategy is anchored on three foundational principles:

1. Value Maximization of government-owned road assets through strategic identification and packaging;
2. Transparency and Dissemination of investor-relevant information, fostering trust and predictability in the investment ecosystem;
3. Market Development through an expanded investor base, stakeholder outreach, and continuous engagement.

With NHAI currently leveraged at around ₹2.8 lakh crore, successful asset monetization is crucial to ensure continuous investment in upcoming projects while reducing dependence on traditional sources of funding.

This approach strengthens financial sustainability while encouraging private sector involvement in innovation, technology adoption, and better asset management. By shifting away from traditional funding, it aims to improve the durability and quality of road infrastructure, supported by a transparent, structured framework that builds investor confidence and long-term partnerships.