NHAI Poised to Achieve FY 2025–26 Monetisation Target, Realises over Rs. 28,300 Crores Through InvIT and TOT Models

1. At a Glance

NHAI (under Ministry of Road Transport & Highways) monetises operational national highway stretches via InvITs and Toll-Operate-Transfer (TOT) to recycle capital for fresh highway construction. [S1]
For FY 2025–26, NHAI has realised Rs. 28,307 crore against the Government's budgeted target of Rs. 30,000 crore. [S1]
UPSC relevance: tests Asset Monetisation, National Monetisation Pipeline (NMP) 2.0, InvIT/TOT mechanics, and capital-recycling fiscal strategy. [S2]

2. Why in the News

PIB release (30 March 2026) announced NHAI has realised Rs. 28,307 cr through Public InvIT + Private InvIT + TOT (Bundles 17 & 18). [S1]
InvIT Round-5 awarded for Rs. 6,366.98 cr (two NH sections in Maharashtra & Andhra Pradesh) to NHIT Western Projects Pvt Ltd for a 20-year concession. [S1]
TOT Bundle-18 awarded for Rs. 3,087 cr for the 74.5 km Chandikhole–Bhadrak section of NH-16, Odisha. [S1]
TOT Bundle-19 bids under technical evaluation. [S1]

3. Background & Evolution

Asset Monetisation rationale: unlock value from brownfield public assets without privatisation; rights transferred, ownership retained. [S2]
National Monetisation Pipeline (NMP 1.0) launched August 2021 by NITI Aayog — Rs. 6 lakh crore over FY22–FY25. [S2]
NMP 1.0 outcome: ~Rs. 3.85 lakh crore monetised in three years. [S3]
TOT model introduced by NHAI in 2016; first bundle awarded 2018.
NHIT (Private InvIT) sponsored by NHAI floated in 2020; raised Rs. 15,624.9 cr in InvIT Round earlier (largest till then). [S3]
Raajmarg Infra Investment Trust (RIIT) — NHAI's Public InvIT — listed on BSE on 24 March 2026 with 5 NH assets across Jharkhand, Tamil Nadu, Andhra Pradesh, Karnataka for ~Rs. 9,500 cr. [S1]
NMP 2.0 launched by FM Nirmala Sitharaman on 23 February 2026 — aggregate potential Rs. 16.72 lakh crore (FY26–FY30). [S2]

4. Core Static Facts

Implementing agency: National Highways Authority of India (NHAI) — statutory body under NHAI Act, 1988. [S1]
Parent ministry: Ministry of Road Transport & Highways (MoRTH). [S1]
Regulator (InvIT): SEBI (InvIT Regulations, 2014). [S3]
Monetisation models:
TOT — upfront concession fee for 15–30 yrs; concessionaire collects toll, does O&M.
InvIT — pool of operational assets; units sold to institutional/retail investors.
Securitisation of toll receivables (newer addition).
FY 2025–26 target: Rs. 30,000 cr; realised Rs. 28,307 cr. [S1]
NMP 2.0 (FY26–FY30) total: Rs. 16.72 lakh crore; highways/MMLPs/ropeways share = Rs. 4.42 lakh cr (largest sector). [S2]
FY26 NMP 2.0 phasing: Rs. 2,49,493 cr. [S2]

5. Multi-Dimensional Analysis

Economic

Capital recycling: monetisation proceeds fund Bharatmala Pariyojana & new NH construction without fresh borrowing — reduces NHAI debt (~Rs. 3.4 lakh cr). [S3]
Crowds in long-term institutional capital (pension funds, sovereign wealth funds) via InvIT units.
Retail participation enabled — NHAI InvIT minimum investment kept low at Rs. 10,000. [S1]

Administrative / Governance

Ownership of asset remains with Government; only revenue rights transferred — addresses political pushback against "privatisation". [S2]
NHAI launched Raajmarg Infra Investment Managers Pvt Ltd (RIIMPL) to manage the public InvIT. [S1]

Fiscal / Federal

Proceeds count as non-debt capital receipts — improves fiscal arithmetic of Centre.
States get NH assets back debt-free at end of concession (15–30 yrs).

Sectoral / Infrastructure

Highways sector dominates NMP 2.0 (~26 %). [S2]
Mature model — NHAI is the single largest monetiser among CPSEs/agencies.

Risk

Traffic risk borne by concessionaire (TOT) — bids sensitive to economic cycle; some early TOT bundles got no/poor bids.
InvIT unit prices subject to market risk.

6. Recent Developments (last 12–18 months)

23 Feb 2026 — FM launches NMP 2.0 (FY26–FY30) worth Rs. 16.72 lakh cr. [S2]
24 March 2026 — Raajmarg Infra Investment Trust (RIIT) listed on BSE; NHAI's first Public InvIT. [S1]
30 March 2026 — InvIT Round-5 (Rs. 6,366.98 cr, NHIT Western Projects) and TOT Bundle-18 (Rs. 3,087 cr, NH-16 Odisha) awarded. [S1]
Cumulative FY26 realisation: Rs. 28,307 cr; TOT Bundle-19 bids under evaluation. [S1]
Earlier (2024) — NHAI completed largest InvIT monetisation of ~Rs. 18,000 cr. [S3]

7. Prelims Hooks

NHAI's FY 2025–26 asset monetisation target = Rs. 30,000 crore. [S1]
Amount realised by end-March 2026 = Rs. 28,307 crore. [S1]
InvIT Round-5 awarded for Rs. 6,366.98 cr; concessionaire NHIT Western Projects Pvt Ltd, period 20 years. [S1]
TOT Bundle-18 = Rs. 3,087 cr, covers 74.5 km Chandikhole–Bhadrak stretch of NH-16, Odisha. [S1]
NHAI's Public InvIT = Raajmarg Infra Investment Trust (RIIT) listed on BSE on 24 March 2026, value ~Rs. 9,500 cr across Jharkhand, TN, AP, Karnataka. [S1]
Investment manager for RIIT = Raajmarg Infra Investment Managers Pvt Ltd (RIIMPL). [S1]
NMP 2.0 launched by FM Sitharaman on 23 Feb 2026; period FY 2025–26 to FY 2029–30; potential Rs. 16.72 lakh crore. [S2]
Private sector investment component under NMP 2.0 = Rs. 5.8 lakh crore. [S2]
Largest sector under NMP 2.0 = Roads/MMLPs/Ropeways at Rs. 4.42 lakh cr; Railways Rs. 2.62 lakh cr; Power Rs. 2.76 lakh cr. [S2]
NMP 1.0 (Aug 2021) target = Rs. 6 lakh cr; realised ~Rs. 3.85 lakh cr in 3 years. [S3]
InvIT is regulated by SEBI (InvIT) Regulations, 2014.
NHAI established under NHAI Act, 1988, parent ministry MoRTH. [S1]
Minimum retail investment in NHAI InvIT = Rs. 10,000. [S1]

8. Mains Relevance

GS-III — Indian Economy: Infrastructure, Investment Models, Mobilisation of Resources.
Sub-headings: "Infrastructure: Energy, Ports, Roads, Airports, Railways"; "Mobilization of resources".
Possible question stems: 1. "Asset monetisation, not privatisation, is the cornerstone of India's brownfield infrastructure financing strategy." Discuss with reference to NMP 2.0 and the InvIT/TOT experience of NHAI. (15 marks) 2. Examine how the Toll-Operate-Transfer (TOT) and InvIT models help in capital recycling for highway development in India. What are their associated risks? (10 marks) 3. Critically evaluate the institutional architecture (NITI Aayog, line ministries, SEBI) underpinning the National Monetisation Pipeline 2.0. (15 marks)

9. Related Topics to Study Next

National Monetisation Pipeline 2.0 — direct parent framework. [S2]
Bharatmala Pariyojana / PM Gati Shakti — beneficiary of recycled NHAI capital.
InvITs & REITs (SEBI Regulations) — instrument design and tax treatment.
National Infrastructure Pipeline (NIP) — Rs. 111 lakh cr companion to NMP.
PPP models in India — BOT (Toll/Annuity), HAM, EPC, TOT comparison.
Disinvestment vs Monetisation — conceptual distinction.
NaBFID (National Bank for Financing Infrastructure and Development) — debt-side complement.
FRBM Act & non-debt capital receipts — fiscal accounting linkage.

10. Common Errors / Trap Areas

Confusing InvIT (rights transfer, ownership retained) with privatisation/disinvestment (ownership transfer).
Mixing up NHIT (NHAI's Private InvIT, since 2020) with RIIT/Raajmarg (NHAI's Public InvIT, listed BSE 2026).
Attributing NMP to Finance Ministry alone — it is formulated by NITI Aayog in consultation with line ministries. [S2]
Assuming NMP 2.0 covers only roads — it spans 12 sectors incl. coal, mines, telecom, tourism. [S2]
Treating TOT as a construction contract — it is purely operational (toll + O&M) for already-built NHs.

11. Sources

[S1] NHAI Poised to Achieve FY 2025–26 Monetisation Target — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2247011 — (tier 1)
[S2] FM Sitharaman launches National Monetisation Pipeline 2.0 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2231900 — (tier 1)
[S3] NHAI raises highest ever monetization value of Rs. 15,624.9 Crore through InvIT / NMP monetised Rs 3.85 lakh crore in 3 years — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2004100 ; https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2026675 — (tier 1)