To unlock the value of operational National Highway assets and increase Public Private Partnership in India’s infrastructure development, NHAI released its first-ever ‘Asset Monetization Strategy for the Road Sector’.
The strategy presents a structured framework that provides a robust blueprint to mobilize capital through Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitization models. These instruments have helped NHAI raise over Rs1.4 lakh crore across more than 6,100 km of National Highways under the National Monetization Pipeline.
The strategy is anchored on three core pillars that includes Value Maximization of Government Road assets, Transparency of Processes and Dissemination of Investor-relevant information, and Market Development through deepening the investor base as well as promoting stakeholder engagement.
Commenting on the release of the strategy document, NHAI Chairman Shri Santosh Kumar Yadav said, “The unique approach that NHAI has adopted towards asset monetization not only ensures financial sustainability but also opens opportunities for the private sector, leverages advanced technologies, enhances 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 NRVVMK Rajendra Kumar, Member Finance, NHAI said, “This document outlines a strategic framework to maximize the benefits of asset monetization. It emphasizes the need for a structured approach to identify and value assets, ensuring transparency and fostering investor confidence.”
NHAI Asset Monetization strategy aligns with the Government of India’s objective under the assets monetization 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 one of the early movers towards alternative financing mechanisms, NHAI has been successfully leveraging various monetization instruments. The success of asset monetization by NHAI is critical in unlocking the value of the road network and has contributed towards the development of the National Highway framework in the country.
