The centre is planning to make key changes in the toll-operate-transfer (TOT) model of highway monetisation. This move comes in line with the recent decline in the utilisation of this monetisation method. Under the new approach, the centre plans to offer smaller bundles of highways of up to Rs 15 billion to investors. This is expected to improve the competitiveness and the proceeds for the National Highways Authority of India (NHAI).
In the recent past, the Ministry of Road Transport and Highways (MoRTH) temporarily halted the TOT mode of monetisation because the yield per kilometre of highways was lower than that provided to investors through the infrastructure investment trust (InvIT) mode. Due to this pause, only one TOT-led monetisation took place in 2024-25. However, since the government cannot rely solely on InvITs to achieve its ambitious monetisation targets, the TOT mode will continue.