Four companies bids for nine NHS under ‘T-O-T’ model
The government’s ambitious plan to monetise publicly funded, commercially operational national highway projects has got a big boost. Four companies: Brookfield Asset Management, Macquarie, IRB Infrastructure and Roadis-NIIF have put in bids for nine national highways on offer in the first round. NHAI which invited bids for these highways, hopes to generate more than Rs 6,000Cr by leasing out the roads under the ‘toll-operate-transfer’ (TOT) model.
The auction will involve five highways running across Andhra Pradesh and four in Gujarat. The total length of these highways is just under 700km. A second batch of around five national highways with a total length of 500km would be put out for bidding in March.
Under the TOT model, pension funds and PE firms are allowed to lease government owned national highways for 30 years by making an upfront payment. The lessee, in turn, gets the right to collect the toll, operate, manage and maintain the highway stretch. The government can also increase the concession period in later stages, if the concessionaire wants it.