The National Highways Authority of India (NHAI) is intensifying its efforts to leverage the Toll Operate Transfer (ToT) model for the monetisation of highways, with plans to offer a substantial 12 bundles of stretches to private companies in the current fiscal year.
This strategic move marks a significant expansion compared to the four bundles offered last year, signalling NHAI’s proactive stance towards unlocking the value of its highway assets. According to a senior NHAI official, the decision to increase the number of bundles and frequency of offerings reflects the growing demand from investors and stakeholders in the infrastructure sector. By offering three bundles for bidding in each round, as opposed to two in previous cycles, NHAI aims to capitalise on the robust investor interest and optimise the monetisation process. The identified 33 highway stretches covering a total length of 2,741 kilometres represent prime opportunities for private investment and development. These stretches traverse key regions across several states, including Uttar Pradesh, Rajasthan, Maharashtra, Andhra Pradesh, Telangana, Jharkhand, Orissa, Tamil Nadu, and Bihar, highlighting the nationwide scope of NHAI’s monetisation efforts.
Last year’s successful monetisation endeavours, which yielded Rs 15,968 crore from four bundles, have emboldened NHAI to pursue an even more ambitious target of Rs 54,000 crore for the current financial year. This heightened focus on ToT aligns with NHAI’s broader strategy to diversify financing sources and accelerate infrastructure development across the country. The ToT model offers investors the opportunity to collect toll revenue on highway stretches for a period of 20 years in exchange for an upfront payment. Additionally, successful bidders are responsible for the operation and maintenance of these stretches, ensuring sustained service quality and infrastructure upkeep. As NHAI proceeds with the tendering process for the upcoming ToT bundles, the stage is set for increased private sector participation in India’s infrastructure development journey. With continued momentum in highway monetisation, NHAI aims to unlock the inherent value of its assets while fostering economic growth and connectivity nationwide.
