Nitin Gadkari to attend Road Show on TOT in Mumbai on 15th November

New Delhi: Nitin Gadkari, Union Minister for Road Transport & Highways, Shipping, Water Resources, River Development & Ganga Rejuvenation will attend a Road Show on the second bundle of Toll-Operate-Transfer (TOT) in Mumbai on the 15^th of this month. The event will be organized by National Highways Development Authority (NHAI) at 10.30 AM in Hotel Hyatt Regency, Sahar Airport Road, Mumbai. The objective of the Road Show is to invite prospective investors to be a part of the TOT projects. NHAI has done successful Road Shows in New Delhi, New York and Toronto in August and September this year.

TOT is a model for monetizing operational National Highways projects. The investor makes a lump sum payment in return for long term toll collection rights backed by a sound tolling system. The concession period is 30 years. Upto 49 % divestment is allowed till two years of the concession period. Upto 10 % change isn ownership is allowed after two years. The investor is de-risked from undertaking any construction. If required, NHAI will conduct capacity augmentation at its own cost.

The first TOT bundle of 9 projects, totalling approximately 681 KM of roads in two states of Andhra Pradesh and Gujarat, was awarded in 2018. Huge interest was shown by foreign investors. TOT Bundle-I was awarded to Macquarie for Rs. 9,681 Crore, which was 1.5 times the Authority’s estimate.National Highways Authority of India did a financial closure of this  project,  with the India chief of Macquarie handing over a cheque for Rs 9,681.5 crore to Shri Nitin Gadkari on 29^th August 2018 in New Delhi

The second bundle of over 586 kms is now offered spread over four States – Rajasthan, Gujarat, West Bengal and Bihar. The offer has 12 toll plazas across four highways.

TOT Bundle II

The stretches offered are operational highways with a proven tolling history of at least 2 years