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NHAI may rethink TOT after next two rounds, Infra News, ET Infra

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NEW DELHI: The National Highways Authority of India (NHAI) may take a break from bringing a fresh round of Toll-Operate-Transfer (TOT) projects after the allotment of the 13th and 14th bundles.

The bids for the 13th and 14th round of TOT are under evaluation.

It is learnt that the current market situation does not allow the authority to go for further rounds of TOT anytime soon.

“There is hardly any appetite in the market for more such bundles, we will assess the market conditions for sometime and then move forward with TOT rounds,” an official said on condition of anonymity.

In the past some of the TOT offerings by NHAI have been scrapped due to below par bids.

There were four bids for the 12th bundle including a Rs 4200 crore bid but the authority decided to cancel it as the amount of the bids received was way below the authority’s estimates. The other offering (11th bundle) received only one bid and therefore had to be canceled.

NHAI had done away with the base price for invitation of bids after the fourth round of TOT. The bids received are compared with IECV (initial estimated concession value) decided by a committee appointed by NHAI.

The reserve price for the canceled bids was below the IECV.

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.

Under the monetization plan, the Ministry of Road Transport and Highways will offer projects under TOT contracts and Infrastructure Investment Trusts (InvITs) to be offered by the NHAI. InvITs are assets where investors put in money and income generated from such assets is paid as dividend.

The overall monetization target for the Ministry of Road Transport and Highways is Rs 45,000 crore, of which Rs 30,000 crore would be raised by TOT or Toll-Operate-Transfer model and remaining Rs 15,000 crore via InvITs.

On August 3, 2016, the Cabinet authorized the NHAI to monetise public-funded national highway projects that are operational and are generating toll revenues for at least two years.

  • Published On Nov 21, 2023 at 08:25 AM IST

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