ICRA Predicts Robust Growth in NHAI's Road Monetisation for FY26

In an optimistic projection, ICRA has estimated that the National Highways Authority of India (NHAI) could achieve road monetisation worth Rs. 35,000-40,000 crore in the fiscal year 2026, if the identified assets are monetized timely. This would mark a significant increase from the Rs. 24,399 crore achieved in FY25, easily surpassing the FY26 budget target of Rs. 30,000 crore.

The report credits this potential upsurge to NHAI's strategic identification and preparation for monetisation of several assets, including five toll-operate-transfer (TOT) bundles already under bid, and an Infrastructure Investment Trust (InvIT) plan. Since FY19, NHAI has effectively utilized these two asset monetisation methods, accumulating Rs. 92,633 crore by FY25. Particularly, the TOT approach has been a substantial contributor, accounting for 53% of the total monetisation in recent years.

According to ICRA's analysis, the valuation multiple for the TOT bundles ranged between 0.46 and 0.93 over the last three years, with a median of 0.62. The consistent track record of toll collection, which spans 4 to 15 years, supports these figures. The potential Rs. 35,000-40,000 crore in FY26 is projected to boost total monetisation proceeds to around Rs. 1.3 lakh crore since inception. Delays in recent TOT awards caused a shortfall in FY25's ambitious Rs. 37,000-40,000 crore target, pointing to challenges and opportunities ahead.

(With inputs from agencies.)