Bidding for 2nd tranche of TOT highway projects to end on December 19

The road ministry Tuesday said interested players could bid for the second tranche of eight highway projects under the toll-operate-transfer (TOT) model till December 19.

After the huge success of the maiden bundle of nine highway projects under TOT that fetched NHAI Rs 9,681 crore, the government has come out with the second tranche.

"The submission of bids for the second bundle of TOT will close on the 19th of this month. This bundle consists of over 586 km of national highways, spread over four states Rajasthan, Gujarat, West Bengal and Bihar," the Ministry of Road Transport and Highways said in a statement.

The offer has 12 toll plazas across four highways.

Road Transport Minister Nitin Gadkari had through a roadshow in Mumbai last month had invited prospective investors to be a part of the TOT projects.

TOT is a model for monetising operational national highway projects. The investor makes a lump sum payment in return for long-term toll collection rights backed by a sound tolling system. The concession period is 30 years.

Up to 49 per cent divestment is allowed till two years of the concession period while up to 10 per cent change in ownership is allowed after two years.

"The investor is de-risked from undertaking any construction. If required, NHAI will conduct capacity augmentation at its own cost," the statement said.

The first TOT bundle of 9 projects, totalling approximately 681 km of roads in two states of Andhra Pradesh and Gujarat, was awarded in 2018 after huge interest shown by foreign investors.

TOT Bundle-I was awarded to Macquarie for Rs 9,681 crore, which was 1.5 times the authority's estimate. The National Highways Authority of India did a financial closure of this project with the India chief of Macquarie handing over a cheque for Rs 9,681.5 crore to Gadkari on August 29 this year.

(With inputs from agencies.)