Gadkari to woo investors for 2nd tranche of 8 road projects under TOT
Union Minister Nitin Gadkari will attend a road show in Mumbai this week to attract investors for the second tranche of highway projects of 586 km under toll-operate-transfer (TOT) basis, the road transport and highways ministry said.
The maiden bundle of nine highway projects under TOT was a huge success and had fetched NHAI Rs 9,681 crore.
TOT is a model for monetising operational National Highways projects. The investor makes a lump sum payment in return for long term toll collection rights backed by a sound tolling system.
"Nitin Gadkari, Union Minister for Road Transport & Highways, Shipping, Water Resources, River Development & Ganga Rejuvenation will attend a Road Show on the second bundle of TOT in Mumbai on the 15th of this month," the ministry said.
"The objective of the Road Show is to invite prospective investors to be a part of the TOT projects. NHAI has done successful Road Shows in New Delhi, New York and Toronto in August and September this year," it added.
Under TOT the concession period is 30 years.
"Upto 49 per cent divestment is allowed till two years of the concession period. Upto 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 statment 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.
"The second bundle of over 586 kms is now offered spread over four States - Rajasthan, Gujarat, West Bengal and Bihar. The offer has 12 toll plazas across four highways," the statment said.
These stretches include Chittorgarh-Kota & Chittorgarh Bypass Swaroopganj-Pindwara & Pindwara-Udaipur, Palanpur / Khemana - Abu Road, Jetpur-Somnath, PurneaDalkhola, DalkholaIslampur, Islampur - Sonapur - Ghoshpukur and Salsalabari - West Bengal Assam Border Section.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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