Analysts expect third TOT road bundle will be a success on better toll income

Mumbai: Analysts expect the government’s third attempt to auction public highways under the toll-operate-transfer (TOT) model will be as successful as the first, having drawn a blank in round two. On Thursday, the National Highways Authority of India (NHAI) invited bids from private operators for the third bundle of TOT auctions, looking to raise a minimum of ₹4,995 crore.

Based on future cash flows and discount rates used to arrive at present value, the NHAI has estimated the concession value at roughly ₹8.8 crore/km compared with ₹9.15 crore in the first two iterations of road TOT, said SBICap Securities in a report.