The National Highway Authority of India (NHAI) has awarded two toll, operate and transfer (TOT) bundles 11 and 12 of a combined length of 400 km for Rs 6,584 crore, which is Rs 553 crore higher than the bids received in the first round that was later called off by the government.
TOT model has been developed to encourage private participation in the highway sector. NHAI from time to time, has awarded contracts for tolling, operation and maintenance of various National Highway stretches on Toll Operate Transfer (TOT) basis.
Till now, NHAI has monetized 1614 km of projects for Rs 26,366 crore (excluding ToT bundle 11 and 12) through ToT and 636 km of projects for Rs 10,200 crore through InVIT, it said.
The two bundles (11 & 12) consist of Allahabad Bypass on NH19 in Uttar Pradesh and Lalitpur-Sagar-Lakhnadon section in the state of Uttar Pradesh and Madhya Pradesh respectively.
According to the statement issued by NHAI on Sunday, the TOT bundle 11 for the 84 km long Allahabad Bypass on NH19 in Uttar Pradesh has been awarded to Cube Highways and Infrastructure for Rs 2,156 crore while the TOT bundle 12 for the 316 km long Lalitpur-Sagar-Lakhnadon section that passes through the states of Uttar Pradesh and Madhya Pradesh has been awarded to IRB infrastructure Trust for Rs 4,428 crore.
“The Government has been very supportive and encouraging to achieve the national monetization targets. I am pleased that we have raised Rs. 6,584 crore from these two bundles, which will greatly contribute towards the development of a world class National Highway Network in the country,” NHAI chairman Santosh Kumar Yadav said.
The contract period of TOT is for 20 years in which concessionaires would be required to maintain and operate the stretch. In lieu of this, concessionaires will collect and retain user fees for these stretches in accordance with prescribed fee rates under NH Fee Rules.
The TOT Bundle-I consisting of nine projects, totaling 681 km of National Highways in states of Andhra Pradesh and Gujarat was awarded in 2018.