Adani, IRB, and Edelweiss Among Top Bidders for NHAI’s Highway Monetisation Under TOT Model
Adani Road Transport, IRB Infrastructure, and Edelweiss-backed Epic Concessions are competing to acquire operational highway projects under NHAI’s Toll Operate Transfer (TOT) monetisation model. The bid focuses on a 124 km stretch of highways connecting Trichy, Madurai, and Tovrankurichi in Tamil Nadu, part of TOT Bundle 15. This package is crucial for NHAI as it represents the second monetisation in the 2024-25 fiscal year. The transaction aims to replicate the success of NHAI’s September 2024 deal, which raised Rs 6,661 crore by monetising roads on the Hyderabad-Nagpur corridor in Telangana.
The NHAI’s Monetisation Vision
The Toll Operate Transfer model allows private players to lease the rights to operate, maintain, and collect tolls for a period of 20 to 30 years. In exchange for these rights, companies pay an upfront concession fee to the government. The concessionaire is then responsible for maintaining the roads and collecting tolls, which are retained by them in accordance with prescribed fee structures. For the Trichy-Madurai-Tovrankurichi stretch, bidders will likely face an extensive evaluation process, with technical bids already opened and financial bids expected in the coming days.
In line with the National Monetisation Plan, NHAI is aiming to raise Rs 54,000 crore through asset monetisation this year alone, surpassing last year’s target. Of this, Rs 46,000 crore is expected to come through the TOT model, which is emerging as a popular and efficient way to generate capital while improving road infrastructure across India.
The Players Behind the Bids
The companies competing for these assets—Adani Road Transport, IRB Infrastructure, Epic Concessions, and Prakash Asphalting & Toll Highways (PATH)—are all heavyweights in infrastructure development. Each has its own vision for India’s road sector and sees the TOT model as an opportunity to both contribute to and benefit from the country’s growing demand for improved connectivity.
For Adani, the TOT model aligns perfectly with its broader infrastructure strategy, positioning the company as a leading player in the country’s highway sector. IRB Infrastructure, a longstanding leader in the tolling and infrastructure space, also sees the model as a way to enhance its portfolio and help further the nation’s road connectivity. Meanwhile, Edelweiss-backed Epic Concessions offers expertise in managing large-scale infrastructure projects and sees the monetisation as an opportunity to bring innovative solutions to highway operations.
The Impact on Local Communities
The NHAI’s initiative to monetise highways has far-reaching benefits for communities. The Trichy-Madurai-Tovrankurichi highway is a key arterial route in Tamil Nadu, and the modernisation and maintenance under the TOT model will provide more reliable and efficient travel for daily commuters. With improved road infrastructure, local businesses will also benefit from faster transportation, reducing travel time and improving trade logistics.
From an economic standpoint, monetising these roads offers the government a steady stream of revenue, which can be reinvested in further infrastructural development. The investment from private players like Adani and IRB, who have expertise in maintaining large road networks, will ensure that the highways are well-maintained, ensuring safety and comfort for millions of users.
A Vision for the Future
This push for road monetisation is set to reshape the future of Indian infrastructure. With multiple TOT bundles still open, including Bundles 17, 18, and 19, the NHAI is committed to raising significant funds through these initiatives. These projects promise to enhance connectivity between states, opening new economic avenues, and improving the overall quality of life for millions of people.
By 2025, NHAI plans to raise over Rs 1 trillion from monetisation initiatives. This includes Rs 48,995 crore through TOT, Rs 25,900 crore via Infrastructure Investment Trusts (InvIT), and Rs 42,000 crore through securitisation. As the network of monetised highways grows, private sector participation will become a cornerstone of India’s infrastructure, driving growth, sustainability, and development across the country.
