Union Minister Nitin Gadkari will invite prospective investors for the second tranche of highway projects of 586 km under toll-operate-transfer (TOT) basis. The first TOT auction for a bundle of nine projects was a huge success and had fetched NHAI Rs 9,681 crore. TOT is a model for monetising operational National Highways projects. Under TOT, the investor makes a lump sum payment in return for long term toll collection rights backed by a sound tolling system and the concession period is 30 years.
He said upto 49 percent divestment is allowed till two years of the concession period, upto 10 percent change in ownership is allowed after two years. The investor is de-risked from undertaking any construction. If required, NHAI will conduct capacity augmentation at its own cost. The first lot of TOT bundle comprising nine projects, totalling around 681 KM of roads in two states of Andhra Pradesh and Gujarat, was awarded in 2018.
The second bundle of over 586 kms is now offered spread over four States - Rajasthan, Gujarat, West Bengal and Bihar. The offer has 12 toll plazas across four highways. These stretches include Chittorgarh-Kota & Chittorgarh Bypass Swaroopganj-Pindwara & Pindwara-Udaipur, Palanpur / Khemana - Abu Road, Jetpur-Somnath, PurneaDalkhola, DalkholaIslampur, Islampur - Sonapur - Ghoshpukur and Salsalabari - West Bengal Assam Border Section.