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Second tranche of TOT highways gets new bidders. Know the bidders!
A due diligence is being carried out and the companies are assessing the feasibility of the road assets that are a part of this TOT package. In August, a tranche of eight operational road assets with a length of 586.5 km was up for bids, covering states such as Gujarat, Bihar, West Bengal and Rajasthan. NHAI has finalised the floor price for this bundle of projects at Rs 53.62 billion in lieu of a concession or toll collection period of 30 years.
The deadline for submitting the bids was November 5. But this has now reportedly been stretched by a month, to December 5, taking into account some of the companies? requests which are assessing the assets. As per the TOT model, the NHAI gets an upfront amount from the winning bidder for the 30-year concession period, along with the responsibility to maintain and operate the roads.
In February this year, the first TOT bundle of road projects was bid out to Macquarie Group in partnership with Ashoka Buildcon for Rs 96.81 billion, which is one and a half times higher than the floor price of Rs 62.58 billion.
Under the TOT model, MoRTH has identified 105 operational highways for auction. Union Minister Nitin Gadkari reportedly believes that monetising these projects can earn the government up to Rs 1.25 trillion.
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