NHAI accepts NHIT's Rs 6,221 cr offer to monetise two highway assets

NHAI Accepts Major Monetisation Offer from National Highways Infra Trust

The National Highways Authority of India has accepted an offer from National Highways Infra Trust amounting to Rs 6,220.90 crores for the monetisation of two major national highway sections spanning 310.35 kilometres across Maharashtra and Andhra Pradesh. This transaction represents a strategic milestone in India's efforts to unlock the capital value of existing highway infrastructure while attracting private sector participation. The monetised assets include the 255.97 kilometre Amravati–Chikhali–Tarsod section of National Highway 53 in Maharashtra and the 54.38 kilometre Gundugolanu–Chinna–Avutapalli section of National Highway 16 in Andhra Pradesh.

Asset monetisation has emerged as a critical financial tool for India's highway development strategy. The National Highways Authority leverages established models such as Toll-Operate-Transfer and Infrastructure Investment Trusts to generate substantial capital from operational highway assets. These funds are subsequently reinvested into constructing and maintaining new National Highway projects across the country. During the current financial year, the total monetised National Highways assets amount to approximately Rs 28,077 crores, reflecting the effectiveness of this approach in enhancing both financial sustainability and operational efficiency of the highway network.

Strategic Importance and Long-term Vision

Commenting on this achievement, Santosh Kumar Yadav, Chairman of NHAI, stated, This statement underscores the pivotal role that InvITs are playing in facilitating India's infrastructure development agenda. The monetisation strategy not only ensures financial sustainability of highway projects but also brings in private sector efficiencies and advanced technologies, which enhance the quality and longevity of National Highway assets across the nation.

Infrastructure Investment Trusts are playing a critical role in channelizing financial capital for further development of National Highway network across the country. With this award, total assets monetized through NHIT will be Rs 49,858 crore.

The central government releases funds to NHAI for monetisation primarily to unlock capital value and reinvest these funds into building new critical infrastructure. With the tentative list of 24 road assets identified for monetisation in 2025-26, spanning 1,472 kilometres across multiple states, the government targets a revenue of around Rs 30,000 crore through asset monetisation during the financial year. This comprehensive approach demonstrates the government's commitment to developing a robust and financially sustainable highway network.

Private Sector Participation and Future Prospects

By involving private investors through monetisation models, NHAI not only brings in substantial capital but also introduces advanced technologies and best practices. This collaborative approach improves the quality, longevity, and operational efficiency of India's national highway network. The monetisation process creates a win-win situation where the government can redeploy capital to new projects while private operators gain the opportunity to manage established, revenue-generating assets with predictable cash flows. The cumulative monetisation through various modes till November 2025 stands at Rs 1,52,028 crores, demonstrating the significant scale and success of this strategy.

The acceptance of NHIT's offer represents more than just a financial transaction; it symbolises a shift towards modern infrastructure financing practices in India. The transaction brings total assets monetised through NHIT to Rs 49,858 crores, establishing the trust as a major vehicle for channelising investment into highway development. As India continues to expand its National Highway network to meet growing transportation demands, such monetisation initiatives will play an increasingly important role in financing new projects and maintaining existing infrastructure at world-class standards.