On Offer: Projects worth Rs.5,000 crore
The National Highways Authority of India (NHAI) is expected to offer 550 km of toll-based road projects to private companies soon in a move to monetize assets.
NHAI will seek bids for toll-operate-transfer (TOT) plan for road projets in Tamil Nadu, Uttar Pradesh, Bihar and Jharkhand next month, worth about Rs.5,000 crore, reported the Economic Times on 25 May 2019.
The government introduced TOT model in 2016, which currently is based on 30-year lease on one-time lump sum payment. The first auction for 680-km road projects ended in February. The second auction was cancelled in February 2019 due to poor response with a bid of Rs.4,6112 crore against NHAI expectation of Rs.5,362 crore.
The Macquire Group won a third auction bid for Rs.9,681 crore, up on NHAI’s estimate of Rs.6,258 crore. Brookfield Asset Management, IRB Infrastructure and Road is National Investment and Infrastructure Fund were among the bidders of that round, according to the Economic Times report. fiinews.com
