India’s national highway tolling network has untapped potential, with estimates from SBI Capital Markets (SBICAPS) indicating it could generate Rs 2.5 lakh crore annually through enhanced asset monetisation. The report highlights this revenue could bolster public finances and fund infrastructure projects.

Currently, only 30% of this potential is realised. Among 750 toll plazas from FY00 to FY24, toll revenue grew at a 12% CAGR, reaching Rs 54,800 crore in FY24. Industrially active states like Maharashtra, Tamil Nadu, and Gujarat contributed significantly. Toll revenues have grown 2.6 times over five years, with a target of Rs 1.3 lakh crore by 2030, leveraging increased traffic and toll adjustments.

SBICAPS recommends models like Infrastructure Investment Trusts (InvIT) and Toll-Operate-Transfer (TOT) to further monetise traffic and toll hikes, potentially unlocking Rs 2.5 lakh crore more. Union Minister Nitin Gadkari recently emphasised toll increases as essential for expanding infrastructure. The Atal Setu (Mumbai Trans Harbour Link) exemplifies this, charging a Rs 250 toll and showcasing the success of the pay-and-ride model.

State highways also present monetisation potential as FASTag usage rises, enabling efficient revenue collection. SBICAPS notes that of India’s Rs 3.6 lakh crore national highway monetisation potential, only Rs 1.1 lakh crore has been achieved. Key states like Maharashtra and Karnataka are positioned to benefit from additional toll monetisation.

India’s toll collections nearly tripled in five years, reaching Rs 48,028.22 crore in 2022-23. Projections place total revenue at Rs 70,000 crore for FY25 and Rs 1.3 lakh crore by FY30, with an anticipated 15% annual growth rate.

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