The National Highways Authority of India (NHAI) is seeking “flexibility” from the Cabinet in structuring toll-operate-and- transfer (ToT) projects as banks and private operators strike discordant notes on the asset monetisation model, which is beginning to show signs of strain over financing issues.
India’s highway development agency currently offers ToT concessions for 30 years, wherein, the right to collect toll revenue is auctioned to the highest bidder.
“While there are suggestions that we should reduce and bring it down to 15 years, there are also suggestions to keep it at 30 years itself. Nevertheless, we have moved a note where we have sought to get more flexibility, because in the earlier Cabinet approval, 30 years was the fixed tenure.
