NHAI won’t set reserve price for fifth TOT round

MUMBAI: The National Highways Authority of India (NHAI) is likely to refrain from setting a reserve price for the upcoming toll-operate-transfer (TOT) auctions. This is a departure from past practice and comes in the wake of recent bids failing to meet the floor price set by it.

NHAI is likely to auction four to six toll plazas, primarily in Gujarat, a person aware of the discussions said, requesting anonymity. The concession period will be reduced from the earlier 30 years to 20 years and the bundle size is also expected to be significantly smaller, he said.

The move towards not setting a floor price may have been prompted by the fact that most investors are wary of committing large amounts of capital for public infrastructure amid covid-related uncertainties.