NHAI has launched its Toll Operate Transfer (ToT) initiative for the fiscal year, inviting bids for three bundles of highways totaling 801.7 km across Uttar Pradesh, Tamil Nadu, and Odisha. The project aims to monetize these highways through long-term toll collection rights. Last year's successful bids raised INR 15,968 crore, motivating NHAI to increase this year's target to INR 54,000 crore, with INR 46,000 crore from ToT and Infrastructure Investment Trusts. NHAI plans to monetize 33 highway stretches totaling 2,741 km to boost infrastructure development and economic connectivity in India.
In its first attempt at monetization through the Toll Operate Transfer (ToT) mode this fiscal year, the National Highways Authority of India (NHAI) has invited bids for three bundles of highways, a departure from the previous approach of offering two bundles per round. Encouraged by the positive response from investors in earlier rounds of ToT monetization, NHAI has decided to put three bundles of highways up for bidding each quarter. In this initial round, NHAI seeks to monetize 801.7 km of national highways via the ToT model. NHAI grouped these highways into three bundles located in Uttar Pradesh, Tamil Nadu, and Odisha.
Bundle 17 has the Kanpur-Lucknow-Ayodhya and Ayodhya-Gorakhpur sections in Uttar Pradesh, spanning a total of 333.4 km. Bundle 18 comprises the Chandikhol-Bhadrak and Panikholi-Rimuli sections in Odisha, spanning 283.8 km. Bundle 19 covers the Trichy-Thanjavur and Madurai-Tuticorin sections in Tamil Nadu, with a total length of 184.5 km. Last year, notable investors such as KKR-backed Highways Infrastructure Trust, Cube Highways, IRB Infrastructure Trust, funds backed by the Abu Dhabi Investment Authority, National Investment and Infrastructure Trust (NIIF), and the Adani Group participated in bidding for bundles 11, 12, 13, and 14. By transferring these bundles to external investors, NHAI generated approximately INR 15,968 crore.
Under the ToT model, investors gain the right to collect tolls on highways for 20 years after making an upfront payment to NHAI. Analysts estimate that the average revenue realisation from each kilometre of highway is around INR 22 crore, although this figure varies significantly depending on traffic density and the composition of the user base, whether predominantly personal or commercial vehicles. Currently, the bidding process for Bundle 15 and Bundle 16 is in progress. These bundles comprise three highway stretches, totaling 375 km, within the states of Telangana and Tamil Nadu.
NHAI aggressively pursues the ToT model to meet its ambitious INR 54,000 crore monetization target for this financial year, significantly higher than last year's INR 40,227 crore. This year, NHAI plans to raise INR 8,000 crore through project-based financing and INR 46,000 crore through ToT and Infrastructure Investment Trusts. The National Highways Infrastructure Trust (NHIT) has already announced its intention to contribute INR 15,000 to INR 20,000 crore to this year's monetisation plan. NHAI has earmarked 33 highway segments totaling 2,741 km for inclusion in its monetization initiative.
This strategic initiative underscores NHAI's commitment to leveraging its infrastructure assets to generate substantial revenue, thereby facilitating further development and maintenance of national highways across India. By inviting bids for these three bundles, NHAI aims to enhance its financial resources while ensuring the continued expansion and upkeep of its extensive highway network. This strategy not only draws substantial investment but also ensures effective management and operation of the country's highways, thereby enhancing overall economic growth and connectivity.
Advertisement
Facebook
Whatsapp
