Govt has a monetisation plan for India's highways
Govt has a monetisation plan for India's highwaysIndia is reportedly planning to monetise 28 national highway assets covering over 1,800 km in the financial year 2026-27 to raise about ₹35,000 crore. This move is part of the government's effort to recycle infrastructure assets to fund new infrastructure projects.
According to a report in The Economic Times that quoted a government official, the National Highways Authority of India has identified stretches for monetisation, with Haryana having the highest number of assets, followed by Uttar Pradesh. The assets will be monetised through a combination of public and private infrastructure investment trusts and the toll-operate-transfer route, the report added.
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The plan follows the government's decision to allow sovereign wealth funds and pension funds to invest directly in greenfield toll road projects. This year's monetisation pipeline includes two build-operate-transfer projects and seven engineering, procurement and construction projects. Preference is given to monetising hybrid annuity model assets due to their lower capital expenditure risk compared to other project types, it said.
Monetisation receipts from the road ministry stood at ₹29,000 crore in 2025-26. Earlier this year, the ministry's first public InvIT raised over ₹9,000 crore by monetising five highway sections spanning more than 260 km across four states.
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Under the National Monetisation Pipeline 2.0, launched in February, the total monetisation value for the highway sector is estimated at ₹4.42 lakh crore over five years from FY26 to FY30. The FY27 plan, focusing on 28 highway assets, is part of this broader effort to raise funds through operational road projects.