Indian Govt All Set To Make 40,000 Crore Next Year By Launching More Toll Roads

The National Highways Authority of India (NHAI) is expected to raise between ₹35,000 and ₹40,000 crore in FY26 through road asset monetisation. This is well above the ₹30,000 crore target set in the budget and a sharp rise from the ₹24,399 crore collected in FY25.

How The Money Comes In

The projection is based on toll-operate-transfer (TOT) valuations seen in earlier auctions. In the past three years, ten TOT bundles have been awarded, with concession periods of around 20 years and tolling history between 4 and 15 years. These deals showed valuation multiples ranging from 0.46 to 0.93 times, with the median at 0.62 times.

NHAI has a strong pipeline ready. Five TOT bundles are already in the bidding stage, and further transfers are planned through its infrastructure investment trust (InvIT). These will add to the authority’s revenue in FY26.

Missed Targets In FY25

Between FY2019 and FY2025, NHAI raised ₹92,633 crore from asset monetisation. About 53 percent of this came from TOT, while InvIT, introduced in FY2022, has steadily grown its share.

In FY2025, NHAI was expected to raise ₹37,000-40,000 crore but delays in awarding some TOT bundles cut actual realisation to ₹24,399 crore. The amount included ₹6,661 crore from TOT bundle 16 covering 252 km and ₹17,738 crore from the fourth InvIT transfer covering 821 km.

Big Pipeline Still Left

Since FY2023, NHAI has been publishing annual lists of assets set aside for monetisation. Around 7,000 km were identified between FY2023 and FY2025. Of these, 2,000 km have already been monetised and another 1,170 km are currently out under five TOT bundles.

That leaves around 3,750 km still to be monetised. This backlog, combined with new assets that will be identified in FY2026, creates the basis for the ₹35,000–40,000 crore projection. If achieved, total highway monetisation since inception will touch about ₹1.3 trillion.

Impact On Roads And Economy

The government’s aim is to unlock value from existing highways and use the funds for building new ones. This reduces dependence on budgetary allocations and encourages private sector participation.

For private investors, TOT offers predictable toll revenue over a set period in exchange for upfront payment to NHAI. InvITs allow institutions such as pension funds and insurers to invest in highways as long-term assets. Both methods help bring in private money while allowing the government to expand the road network.

Record Targets For FY26

The coming year could set a new high for highway monetisation. With delayed projects from FY25 now moving forward and new bundles lined up, NHAI has a chance to collect ₹35,000-40,000 crore in FY26.

Hitting this mark would make it the authority’s best annual performance yet, giving the government more money to spend on new roads while also signalling stronger private interest in the sector.