The government has set an ambitious target of constructing 10,000 kilometers of highways in the financial year 2025-26 while aiming to generate Rs 30,000 crore through the monetisation of road assets. This was disclosed by the Ministry of Road Transport and Highways (MORTH) in a briefing to the Parliamentary Committee on Transport.
This target is slightly lower than the 10,421 km set for FY25. Additionally, the monetisation objective has been revised downward from the Rs 39,000 crore anticipated in the current fiscal year, according to a report by Financial Express.
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Highway Expansion and Monetisation Strategy
The construction roadmap for FY 2025-26 includes:
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1,100 km of highways in the North-Eastern states
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750 km in tribal regions
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5,800 km of high-speed corridor networks expected to be operational next year
For monetisation, the government plans to raise Rs 15,000 crore each through two models:
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Toll Operate Transfer (TOT)
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Infrastructure Investment Trust (InvIT)
Notably, no target has been set for project-based financing, which involves raising debt against identified assets. This method was previously used for the Delhi-Mumbai Expressway.
NHAI’s Monetisation Plans for FY 2025-26
The National Highways Authority of India (NHAI) has identified 24 highway assets spanning 1,472 km for monetisation in FY26.
Progress in the current fiscal year has been slow. Against the initial Rs 39,000 crore target, only Rs 6,661 crore has been realised so far through monetising 251 km of highways under the TOT model. However, the government anticipates:
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Rs 18,000 crore from two additional TOT bundles
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Rs 20,000 crore via NHIT (National Highways Infrastructure Trust), which will monetise 844 km of roads across six states
Funds raised through InvIT will primarily be allocated to debt repayment, while revenue from TOT will be deposited into the Consolidated Fund of India and allocated to MORTH’s budget.
Push for Private Investment in Highway Projects
The government is actively encouraging private sector participation, targeting Rs 35,000 crore in private funding for highway projects in FY26. It expects that 30% of awarded projects will be executed under the Public-Private Partnership (PPP) model.
Budget Allocation and Ongoing Projects
The 2025-26 Union Budget has earmarked Rs 2.71 lakh crore for central sector roads. Meanwhile, nationwide infrastructure development continues at a rapid pace, with:
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37,000 km of National Highway projects currently under execution
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15,000 km completed by December 2024
With a comprehensive strategy integrating government funding, asset monetisation, and private investment, the highway expansion initiative aims to accelerate India’s transport infrastructure development in the coming years.
