NHAI invites bids for TOT-5, its smallest ever bundle of road assets for monetisation

New Delhi: The National Highways Authority of India (NHAI) has invited bids for the fifth bundle Toll-Operate-Transfer (TOT) package– its smallest ever tender for asset monetisation– without a base price as it looks for better price bids for its operating assets.

Separate bids have been invited for the two Bundles each consisting of one National Highway stretch in Gujarat, the national highways building authority said in a statement on Monday.

The total length of the bundles is around 160 kilometre. The TOT Bundle-I consisting of nine projects, totalling 681 Km of Highways, was awarded in 2018. Subsequent TOT bids have had highways of 500 km on offer.

The ministry, led by Union minister Nitin Gadkari had been working on introducing smaller TOT bundles for attracting domestic players.

The concession period of TOT-5 is 20 years, during which the Concessionaire would be required to maintain and operate the stretch, in lieu of rights to collect and retain user fee for these stretches.

The initial estimated concession value (IECV) of the projects on offer will be disclosed after receipt of technical bids and after declaring the selected bidder, as per recent changes announced by the ministry of road transport and highways.

A senior official ET spoke with said that the ministry is yet to firm up a model for carrying out TOT. “The policy around TOT has not stabilised yet, we are trying to see what is the best model suited for the bids,” the official said, asking not to be identified.

TOT was first approved in 2016, where the concession period of these projects was 30 years. In 2019, NHAI got a nod from the Cabinet to vary concession period between 15 and 30 years, in a bid to attract smaller players.

The two stretches on offer under TOT-5 are Palanpur – Radhanpur – Samkhiyali section of NH 27 from km 589.6 to km 536.0 under TOT-5(A-1) and Palanpur – Radhanpur section of NH 27 (from km 536.0 to km 472.8) and Radhanpur – Samakhiyali section of NH 27 (from km 472.8 to km 430.1) under TOT-5(A-2).

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