India's Ministry of Road Transport and Highways (MoRTH) is considering increasing its highway monetization target by ₹15,000-20,000 crore for fiscal year 2027 (FY27), following a rethink on the Build-operate-transfer (BoT) model. The ministry realized nearly ₹29,000 crore in monetization proceeds in FY26, Bloomberg reported, marking a significant inflow from private sector investments under the BoT framework.
The ministry now views private sector investments in highway development under the BoT model as a form of monetization because it reduces the government's capital burden. This shift in perspective has prompted MoRTH to reassess its FY27 target, aiming to leverage these investments more effectively. The potential increase in the monetization kitty reflects the ministry's strategy to accelerate highway infrastructure development by tapping into private funding sources.
This move aligns with India's broader infrastructure financing trends, where monetization of existing assets is becoming a key tool to fund new projects without increasing fiscal deficits. The BoT model, which involves private players building and operating highways before transferring them back to the government, has been instrumental in attracting private capital. The anticipated rise in the monetization target underscores the government's commitment to expanding highway capacity while managing public expenditure efficiently.
MoRTH's highway monetization proceeds reached approximately ₹29,000 crore in FY26, setting a benchmark for the upcoming fiscal year. The ministry's decision to potentially raise the FY27 target by up to ₹20,000 crore was reported on June 20, 2026, by livemint.com, highlighting a strategic shift in infrastructure funding mechanisms.