NHAI Recalibrates Road Asset Monetization in FY26

The National Highways Authority of India (NHAI) has revised the list of road stretches proposed for potential acquisition by the National Highways Infra Trust (NHIT) as part of Round 5 of its FY26 asset monetization program, replacing an earlier project set disclosed mid-year.

The updated portfolio now comprises two operational highway stretches:

• A 256.7 km, four-lane Amravati–Chikhali–Tarsod section of NH-53 in Maharashtra
• A 54.38 km, six-lane Gundugolanu–Chinna Avutapalli–Vijayawada section of NH-16 in Andhra Pradesh.

Together, these assets total 311.08 km of highway length proposed for transfer to NHIT.

The revision forms part of NHAI’s broader FY26 monetisation strategy, under which approximately 24 road assets spanning about 1,472 km are planned for monetisation through a mix of Toll-Operate-Transfer (ToT) bundles and InvIT structures.

While the formal budgeted target for FY26 monetisation stands near Rs. 30,000 crore, internal projections reportedly place the effective target closer to Rs. 40,000 crore, reflecting an expanded pipeline and growing reliance on non-budgetary funding sources.

Historically, ToT transactions have accounted for roughly 53% of NHAI’s cumulative monetisation proceeds since FY19. However, the share of InvIT-based monetisation has increased in recent years, with NHIT expected to remain a key vehicle in FY26.

Cumulatively, NHAI has mobilised around Rs. 92,600 crore via ToT and InvIT structures up to FY25. Successful execution of the FY26 pipeline could push aggregate monetisation proceeds towards Rs. 1.3 lakh crore.

The FY26 plan aligns with NHAI’s formal Asset Monetisation Strategy aimed at creating a predictable funding stream for highway expansion, reducing dependence on traditional budgetary allocations and debt financing.

The strategy also envisages a public infrastructure InvIT alongside the existing private structure, expanding the investor base to include retail participants. Regulatory changes lowering minimum subscription thresholds have facilitated broader market access to infrastructure investment products.

NHAI’s monetisation approach continues to be structured across three channels:

• ToT concessions,
• InvIT transfers, and
• project-specific SPV-based securitisation. Supporting reforms include the development of an asset register, calibrated bundle sizes, and risk-mitigation measures to improve private sector participation.

The revised NHIT asset list underscores NHAI’s calibrated shift towards portfolio optimisation and structured capital recycling, positioning InvITs as a central pillar of India’s highway financing framework.