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NHAI Hopes To Garner INR 9,000 Crore Under TOT Model In FY20

Infra News - Published on Wed, 12 Jun 2019

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Financial Express reported that even as it had to abort the second round of auction under the toll-operate-transfer model due to lack of investor interest, the National Highways Authority of India is not going slow on its plan to monetise its operational projects. The authority, which is in need of funds to repay debt and build new highways, will soon invite requests for proposal for two TOT tranches, measuring a total of 970 kilometer, hoping to garner at least INR 9,000 crore through this model in FY20.

Under the TOT model, publicly funded operational highway projects are given on long-term lease basis to domestic and foreign “patient capital” investors. Successful bidders are required to pay the lease amount upfront and can recoup their investments and returns by collecting toll over the lease tenure of 30 years.

The sources said that of the two projects to be bid out under TOT now, one is a basket of nine highway projects totalling 566 km spread across Uttar Prdesh, Gujarat, Andhra Pradesh and Jharkhand. The RFP for this will be issued within a week. Tender for another asset comprising eight highway stretches spanning 404 kilometer is expected to be issued in a month.

Meanwhile, NHAI has set the floor price at INR 4,995 crore for the 566 kilometer bundle and INR 4,056 crore for the 404 kilometer basket. Both these stretches are proposed to be handed over to the highest bidder by early next year. These projects have been built by the government under the conventional engineering, procurement and construction model. Tolls are currently being collected by NHAI.

Source :

Posted By : Rabi Wangkhem on Wed, 12 Jun 2019
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