Two TOT projects will fetch NHAI Rs 4,200 crore

Under the toll-operate-transfer (TOT) model, the National Highways Authority of India (NHAI) will get an upfront payment of Rs 4,200 crore from the monetisation of two operational highway stretches totaling 200 km. The ninth TOT bundle's highest bidder, National Investment and Infrastructure Trust (NIIF), has offered to pay Rs 3,011 crore for a 72-km stretch of NH-19 in Uttar Pradesh. For the ninth bundle, which consists of a 125-km stretch on NH-36 in Madhya Pradesh, Sekura Roads has made a bid of Rs 1,711 crore. On Monday, financial bids for the two TOT bundles were made public. NIIF is a government-backed cooperative investment platform for foreign and Indian investors. A portfolio company of the Edelweiss Infrastructure Yield Plus fund is Sekura Roads. To recuperate its investments, operators under the TOT model charge user fees on the stretches at the rates set forth by the NHAI. However, they are required to keep the stretches in good working order for the duration of the concession period, which for the ninth and tenth bundles is 15 years each. Also read: Dilip Buildcon backed as L-1 bidder for Rs 1400 crore project Due to high input prices, highway construction slowed down in Q1