NHAI may raise up to ₹35K cr-40K cr in FY26 via TOT, Invit: Icra

Icra projects NHAI could raise Rs 35,000-40,000 crore in FY26 via TOT and InvIT asset monetisation, exceeding the Rs 30,000 crore target and adding to its Rs 92,633 crore raised till FY25

Don't want to miss the best from Business Standard?

The National Highways Authority of India (NHAI) is expected to generate Rs 35,000–40,000 crore in FY26 through asset monetisation via toll-operate-transfer (TOT) bundles and its infrastructure investment trust (InvIT), according to ratings agency Icra.

 

The projection is based on the median valuation multiple of 0.62 times observed across 10 TOT bundles awarded in the past three years. If realised, this would exceed the budgeted target of Rs 30,000 crore for FY26 and mark an increase from the Rs 24,399 crore raised in FY25.

 

NHAI has built a strong pipeline of projects for monetisation, including five TOT bundles for which bids have already been invited, as well as asset transfers to its InvIT.

 

“The NHAI has predominantly utilised two monetisation mechanisms—TOT and InvIT—since FY19. It has raised Rs 92,633 crore through these channels up to FY25, with TOT contributing 53 per cent of the total. InvIT, launched in FY22, has gained traction in the past two years,” said Vinay Kumar G, sector head, corporate ratings at Icra.

 

Since FY23, NHAI has begun publishing annual lists of assets designated for monetisation. Between FY23 and FY25, about 7,000 km were earmarked, of which nearly 2,000 km have been monetised and another 1,170 km offered for bidding across five TOT bundles. Roughly 3,750 km remain to be monetised.

 

The 10 TOT bundles awarded in the last three years carried an average concession period of 20 years, with toll collection track records ranging between 4 and 15 years (median 10 years). Based on Icra’s estimates, cumulative monetisation by NHAI could touch Rs 1.3 trillion by FY26.

 

For FY25, the National Monetisation Pipeline (NMP) had set a target of Rs 53,366 crore against a budget estimate of Rs 30,000 crore. NHAI realised Rs 6,661 crore through TOT bundle 16 (252 km) and Rs 17,738 crore via the fourth round of InvIT transfers (821 km), totalling Rs 24,399 crore across 1,073 km. Slippages arose as awards under TOT bundles 15, 17, 18 and 19 were deferred, against Icra’s earlier projection of Rs 37,000–40,000 crore.