The National Highways Authority of India (NHAI) has awarded a significant project involving a 251-km stretch of the Hyderabad-Nagpur corridor under the Toll-Operate-Transfer (TOT) bundle model to Highway Infrastructure Trust for Rs 6,661 crore. This announcement was made through an official release on Friday.
The financial bids for TOT Bundle-16 were opened on September 18, 2024, specifically for the NH-44 stretch located in Telangana. As part of the agreement, the concession period will last for 20 years, during which the concessionaire is responsible for maintaining and operating the corridor. In return, they will collect and retain user fees according to the prescribed rates under the National Highway Fee Rules.
NHAI Chairman Santosh Kumar Yadav expressed optimism regarding the TOT model, noting that it achieved a 100% success rate in FY24. He highlighted the encouraging response from bidders, indicating robust interest in private participation in the highway sector.
National Monetization Plan and Success of TOT Bundles
The awarding of this contract is part of NHAI’s broader National Monetization Plan, which has seen total asset monetization surpass Rs 1 lakh crore. This includes Rs 48,995 crore from the TOT model, Rs 25,900 crore through Infrastructure Investment Trusts (InvIT), and Rs 42,000 crore via securitization.
In the fiscal year 2023-24, NHAI successfully awarded four TOT bundles valued at Rs 15,968 crore, exceeding its monetization target of Rs 10,000 crore for that year. The TOT model is designed to foster private investment in the highway infrastructure, allowing for enhanced efficiency and improved road conditions across the national highway network.