NEW DELHI: Adani Road Transport, a unit of Adani Enterprises, will not bid for the upcoming bundles of Toll-Operate-Transport (TOT) projects, expected to be closed in March, this year.
Besides skipping the auctions for the eleventh and twelfth bundles of TOT projects, Adani Road Transport has decided to go slow in terms of executing future highway projects.
This comes at a time when Adani Enterprises is battling the aftermath of the Hindenburg report.
Nearly Rs 11.6 lakh crore in market capitalisation has been shaved off from the company after the US-based short seller Hindenburg came out with a report in January, last month.
The report alleged faulty tax practices by the group besides flagging its financial concerns.
It is learnt that the company may not even bid for the national highways that are in the pipeline.
“They (Adani) are going to go slow,” said an official in the know.
The e-mail sent to the company went unanswered.
Adani Road Transport has been consistently participating in the tenders for TOT bundles in the last couple of years, bagging a few of them.
In a TOT bundle, two to three or more highways are clubbed together to be offered to the investors for a long term operation and maintenance contract.
It is an asset recycle programme wherein, already operational National Highways are being provided to private entities on long term concession basis.
There is no base price for the bidding as NHAI is of the view that having no price helps in receiving better bids.
NHAI from time to time, has issued requests for proposals (RFP) to award contracts for tolling, operation and maintenance of various National Highway stretches on TOT basis.
Total contract period of TOT is 20 years in which Concessionaire would be required to maintain and operate the stretch and in lieu of this, Concessionaire will get right to collect and retain user fee for these stretches for 20 years in accordance with prescribed fee rates under NH Fee Rules.