Even as it had to abort the second round of auction under the toll-operate-transfer (TOT) model due to lack of investor interest, the National Highways Authority of India (NHAI) is not going slow on its plan to monetise its operational projects. According to official sources, the authority, which is in need of funds to repay debt and build new highways, will soon invite requests for proposal (RFPs) for two TOT tranches, measuring a total of 970 km, hoping to garner at least Rs 9,000 crore through this model in FY20.
Under the TOT model, publicly funded operational highway projects are given on long-term lease basis to domestic and foreign “patient capital” investors. Successful bidders are required to pay the lease amount upfront and can recoup their investments · and returns · by collecting toll over the lease tenure of 30 years.
