12 bundles of highway stretches up for TOT by NHAI
ROADS & HIGHWAYS

12 bundles of highway stretches up for TOT by NHAI

In order to increase the monetization of highways through the Toll Operate Transfer (ToT) model, the National Highways Authority of India (NHAI) has decided to offer twelve bundles of stretches for bidding, an increase over the four bundles provided last year. KKR supported Highways Infrastructure Trust, Cube Highways, IRB Infrastructure Trust, funds backed by the Abu Dhabi Investment Authority, the National Investment and Infrastructure Trust (NIIF), and Adani Group were among the bidders for bundles 11, 12, 13, and 14 last year. It was mentioned that the monetization of four asset bundles the year before had brought in Rs 159.68 billion for the NHAI. According to an official, there would be a change in the usual practice, with the NHAI planning to offer three highway bundles for bidding in each round instead of the previous two. The official further stated that this decision was made due to the high demand from investors, and as a result, three bundles would be available for bidding in every quarter. 33 highway segments totaling 2,741 km have already been recognised by the highway constructor as being offered this time. Across Uttar Pradesh, Rajasthan, Maharashtra, Andhra Pradesh, Telangana, Jharkhand, Orissa, Tamil Nadu, and Bihar, these routes are dispersed. There will also be a 4.4 Km stretch of the elevated corridor in Badarpur available. The aggressiveness on ToT coincides with NHAI's pursuit of a monetization target of Rs 540 billion for this fiscal year, far more than the Rs 402 billion achieved the previous year. Analysts estimate that the revenue generated from the monetisation of each km of roadway is around Rs 0.2 billion. But the quantity varies according to the user base, i.e., whether personal or commercial cars use it more frequently. It also depends on the traffic density. For two ToT bundles, 15 and 16, the tendering process has already begun. One 124 km length of the four-lane Trichy-Tovrankurichi-Madurai section is available in Bundle 15, while two 251 km segments of the Telangana Hyderabad-Nagpur corridor are bundled together in Bundle 16. According to the official, the process of monetising these routes will be finished in the next few weeks, and the next round of bidding for the three bundles will take place in June. This fiscal year, instead of the big and small bundles from the previous year, three bundles?big, medium, and tiny?will be put up for simultaneous bids. In place of an upfront payment, the top bidder for roadways along the ToT route is permitted to collect the toll on the affected segments for 20 years. These sections must likewise be kept up and run by them. 2018 saw the first roadways awarded under the ToT paradigm. Since then, 2287 km of roadways have been transferred to overseas investors, raising Rs 423 billion through this route.
Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

In order to increase the monetization of highways through the Toll Operate Transfer (ToT) model, the National Highways Authority of India (NHAI) has decided to offer twelve bundles of stretches for bidding, an increase over the four bundles provided last year. KKR supported Highways Infrastructure Trust, Cube Highways, IRB Infrastructure Trust, funds backed by the Abu Dhabi Investment Authority, the National Investment and Infrastructure Trust (NIIF), and Adani Group were among the bidders for bundles 11, 12, 13, and 14 last year. It was mentioned that the monetization of four asset bundles the year before had brought in Rs 159.68 billion for the NHAI. According to an official, there would be a change in the usual practice, with the NHAI planning to offer three highway bundles for bidding in each round instead of the previous two. The official further stated that this decision was made due to the high demand from investors, and as a result, three bundles would be available for bidding in every quarter. 33 highway segments totaling 2,741 km have already been recognised by the highway constructor as being offered this time. Across Uttar Pradesh, Rajasthan, Maharashtra, Andhra Pradesh, Telangana, Jharkhand, Orissa, Tamil Nadu, and Bihar, these routes are dispersed. There will also be a 4.4 Km stretch of the elevated corridor in Badarpur available. The aggressiveness on ToT coincides with NHAI's pursuit of a monetization target of Rs 540 billion for this fiscal year, far more than the Rs 402 billion achieved the previous year. Analysts estimate that the revenue generated from the monetisation of each km of roadway is around Rs 0.2 billion. But the quantity varies according to the user base, i.e., whether personal or commercial cars use it more frequently. It also depends on the traffic density. For two ToT bundles, 15 and 16, the tendering process has already begun. One 124 km length of the four-lane Trichy-Tovrankurichi-Madurai section is available in Bundle 15, while two 251 km segments of the Telangana Hyderabad-Nagpur corridor are bundled together in Bundle 16. According to the official, the process of monetising these routes will be finished in the next few weeks, and the next round of bidding for the three bundles will take place in June. This fiscal year, instead of the big and small bundles from the previous year, three bundles?big, medium, and tiny?will be put up for simultaneous bids. In place of an upfront payment, the top bidder for roadways along the ToT route is permitted to collect the toll on the affected segments for 20 years. These sections must likewise be kept up and run by them. 2018 saw the first roadways awarded under the ToT paradigm. Since then, 2287 km of roadways have been transferred to overseas investors, raising Rs 423 billion through this route.

Next Story
Infrastructure Urban

Maha Kumbh to Drive Economic Growth of Rs 2 Trillion: Yogi Adityanath

Uttarakhand Chief Minister Yogi Adityanath announced that the Maha Kumbh, expected to draw 40 crore devotees this year, is projected to contribute Rs 2 trillion to economic growth. Speaking at the "Divine Uttar Pradesh: The Must Visit Sacred Journey" conclave, Adityanath credited Prime Minister Narendra Modi for inspiring pride in India's heritage. Highlighting the event's economic impact, the Chief Minister noted that the 2019 Maha Kumbh had contributed Rs 1.2 trillion to Uttar Pradesh’s economy. He added that in 2024 alone, over 160 million devotees visited Kashi Vishwanath in Varanasi, w..

Next Story
Building Material

Tata Steel Reports 8% Rise in India Sales for Q3 FY25

Tata Steel reported an 8% increase in sales in India for the December 2024 quarter, reaching 5.29 million tonnes (mt), compared to 4.88 mt in the same period last year. The growth was attributed to fresh capacity additions and higher export volumes. Internationally, sales in the Netherlands grew to 1.53 mt from 1.30 mt, while sales in the UK declined to 0.56 mt from 0.64 mt due to operational changes. In Thailand, sales rose to 0.28 mt from 0.25 mt. Production in India increased by 6% to 5.68 mt, supported by new capacity at the Kalinganagar facility, which added 5 million tonnes per annum (..

Next Story
Real Estate

MahaRERA Suspends 1,950 Real Estate Projects for Non-Compliance

To safeguard homebuyers' interests, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has suspended the registration of 1,950 real estate projects statewide after developers failed to respond to notices about status updates. Over 3,499 additional lapsed projects are likely to face similar action, according to a MahaRERA statement on January 9. The regulatory authority has also frozen the bank accounts of these developers. This enforcement follows show-cause notices issued in December 2024 to 10,771 projects, primarily in the Mumbai Metropolitan Region, for failing to comply with man..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000