NHAI Grants Two Highway Projects for Rs 6,584 Crore In TOT Model Deal
The National Highways Authority of India (NHAI) stated on Sunday that it has granted two highway projects, totaling 400 kilometres, under the toll-operate-transfer (TOT) model, at a cost of Rs 6,584 crore.
In an official statement, the NHAI disclosed that these two packages, referred to as bundles 11 and 12, include the Allahabad Bypass on NH19 in Uttar Pradesh and the Lalitpur-Sagar-Lakhnadon section spanning Uttar Pradesh and Madhya Pradesh.
According to the statement, Cube Highways and Infrastructure has been awarded TOT bundle 11 for the 84-kilometre-long Allahabad Bypass on NH19 in Uttar Pradesh, with a winning bid of Rs 2,156 crore.
TOT bundle 12, covering the 316-kilometre-long Lalitpur-Sagar-Lakhnadon section traversing Uttar Pradesh and Madhya Pradesh, has been awarded to IRB Infrastructure for Rs 4,428 crore, as noted in the statement.
It further stated that the initial round of bidding for these two bundles was cancelled, and bids were subsequently re-invited, with the NHAI receiving bids worth Rs 553 crore higher than the first round.
NHAI Chairman Santosh Kumar Yadav expressed gratitude for the government's strong support and encouragement to meet the national monetisation goals. The concessionaire for the TOT projects will be responsible for maintaining and operating the highways for a 20-year contract period and will collect and retain user fees in line with NH Fee Rules. The TOT model aims to stimulate private sector involvement in the highway sector.
The NHAI has previously awarded contracts for the tolling, operation, and maintenance of various National Highway stretches under the toll-operate-transfer (TOT) framework. As outlined in the statement, TOT Bundle-I, comprising nine projects totaling 681 kilometres of National Highways in Andhra Pradesh and Gujarat, was awarded in 2018.
To date, NHAI has monetized 1,614 kilometres of projects for Rs 26,366 crore (excluding TOT bundles 11 and 12) through TOT and 636 kilometres of projects for Rs 10,200 crore through InVIT. In a separate statement, IRB Infrastructure noted that this award elevates the company's asset base to Rs 75,000 crore.
"IRB Infrastructure (Private InvIT) has received the Letter of Award (LoA) from NHAI (National Highways Authority of India) for the Rs 4,428 crore Lalitpur-Lakhnadon NH 44, TOT-12 project, with a revenue-linked concession period of 20 years," the statement remarked.
This marked the IRB Group's entry into Madhya Pradesh as the preferred bidder for the Toll-Operate-Transfer (TOT) model with a 20-year revenue-linked concession.
