Nitin Gadkari to attend road show in city

Mumbai: In order to invite prospective investors to be part of the Toll-Operate-Transfer (TOT) projects the Union minister for road transport and highways Nitin Gadkari will attend a road show on the second bundle of TOT in Mumbai on November 15, which will be organised by the National Highways Development Authority (NHAI).

TOT is a model for monetising operational National Highways projects in which 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 in ownership is allowed after two years. The investor is de-risked from undertaking any construction.

The first TOT bundle of nine projects, totaling approximately 681 km of roads in two states of Andhra Pradesh and Gujarat was awarded in 2018 to Macquarie for Rs 9,681 crore, which was 1.5 times the authority’s estimate. The second bundle of over 586 kms which is now offered, is spread over four states, Rajasthan, Gujarat, West Bengal and Bihar.