The central government has opted not to continue with the widely used toll-operate-transfer (TOT) monetisation system.
Following centre’s request to the National Highways Authority of India (NHAI) a thorough review of all TOT bundles awarded thus far, the centre has also suspended monetisation under the toll rights model in February 2025.
The majority of TOT bundles were being bought by foreign investors, in addition to making huge profits.
Currently, the ministry is attempting to increase public funding for Infrastructure Investment Trust (InvITs). For the first time, the NHAI stated in its asset monetisation document that it plans to create a public InvIT.
The ministry, one of the better-performing departments in the government’s continuing asset monetisation effort, has chosen TOT as its monetisation model of choice. Between FY22 and FY25, the ministry achieved 71 per cent of NITI Aayog’s goal of generating around Rs 1.6 trillion in revenue.
Nearly 38 per cent of the ministry’s contribution to the initial asset monetisation pipeline came from the NHAI, which has so far monetised approximately Rs 500 billion worth of roads under this strategy.