Gadkari to lure investors for TOT initiative in Mumbai

In a bid to lure investors, Union Minister for Transport Nitin Gadkari will flag off the second lot of Toll-Operate-Transfer models for monetizing operational National Highway projects in the country, at a roadshow here on November 15, an official said on Tuesday.

This will be the fourth road show of its kind for TOT after similar initiatives in New Delhi, New York and Toronto in August-September.

Under TOT, investors can make a lump-sum payment in return for long-term toll collection rights backed by a sound tolling system and the concession period is 30 years.

While upto 49 per cent divestment is allowed till two years of the concession period, upto 10 per cent change in ownership is permitted after two years, the investor is delinked from undertaking any construction which, if required the NHAI would conduct capacity augmentation at its own cost.

The first lot of TOT bundle comprising nine projects, totalling around 681 km of roads in Andhra Pradesh and Gujarat was awarded earlier this year in which foreign investors evinced keen interest.

The TOT's Bundle-I was awarded to Macquarie for Rs 9,681 crore, coming to 1.5 times the NHAI's estimates and the financial closure of the project was done in August in New Delhi.

The second bundle of over 586 km is now announced for four states -- Rajasthan, Gujarat, West Bengal and Bihar including 12 toll plazas with a proven tolling history of at least two years, across four highways, said the official.

The last date for submission of bids for these TOT bundles is December 5.-IANS