The Economic Times daily newspaper is available online now.

    NHAI invites bids for Toll-Operate-Transfer 4, plans to raise Rs 4,200 crore

    Synopsis

    With an aim to raise Rs 4,200 crore NHAI has invited bids for its 4th bundle of TOT. The highways ministry has been working aggressively on its asset monetisation program, as it creates a pipeline of projects that can be monetised.

    Highway-projects
    TOT 4 could be the last round of TOT auctions to be conducted in the current financial year, while bids for TOT 3 for raising around Rs 5,000 crores are due later this month.
    New Delhi: The national highways building authority has invited bids for its fourth bundle of Toll-Operate-Transfer (TOT) projects, looking to raise around Rs 4,200 crore.

    The government had introduced the TOT model in 2016 for monetisation of publicly-funded highways. Under this, investors make a one-time lump sum payment in return for long-term toll collection rights.

    Bids were invited on Wednesday for seven projects of cumulative length of 401 kilometres, in the states of Punjab, Haryana, Rajasthan, Maharashtra, Madhya Pradesh and union territory Jammu and Kashmir, for a concession period of 30 years, and base value of Rs 4,170 crore.

    The highways ministry has been working aggressively on its asset monetisation program, as it creates a pipeline of projects that can be monetised over the coming years.

    ET had reported on October 1st that the National Highways Authority of India (NHAI) had firming up details of TOT 4, looking to raise a minimum of Rs 4,000 crore.

    TOT 4 could be the last round of TOT auctions to be conducted in the current financial year, while bids for TOT 3 for raising around Rs 5,000 crore are due later this month.

    While the government's maiden round of monetisation of road assets was a massive success, fetching it around Rs 10,000 crore against the base value of Rs 6,258 crore, the second tranche of TOT auctions were scrapped in February this year as response from investors remained tepid.

    NHAI has set itself the target of raising around Rs 9,000- Rs 10,000 crores in FY 19-20. The ministry of road transport and highways has also circulated a cabinet note for allowing flexibility in the concession period from 30 years at present to around 15 20 years.

    Union minister of road transport and highways Nitin Gadkari has also said in the past that TOT projects should be offered in smaller bundles to attract small investors.


    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News, Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the ET ePaper online.

    ...more

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News, Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the ET ePaper online.

    ...more
    The Economic Times

    Stories you might be interested in