NHAI auctions 300km of road assets

The National Highway Authority of India (NHAI), which is aggressively monetizing its road assets, has put up 300 km of road for auction under the Tolling, Operation, Maintenance and Transfer (TOT) model.

Roads under ToT 13 and 14 include the 28 km Kota Bypass (NH76) and the 81 km Gwalior-Jhansi (NH75) under ToT13; and 60 km Delhi-Meerut Expressway (NH-334 DME), 51 km DelhiHapur section (NH-24 & part of DME) and 79 km Binjabahal-Teleibani road (NH6). Offers are expected by September.

The ToT 13 and 14 packages are likely to be worth between 6,000 and 7,000 crore, according to people with knowledge of the development. Emails sent to NHAI did not trigger any replies.

The Kota bypass collects ₹48 crore annually while the Gwalior-Jhansi route brings in rupees 96 crore annually. The Delhi-Meerut Expressway, Delhi-Hapur section and Binjabahal-Teleibani road have collections of ₹137 crore, ₹258 crore and ₹79 crore, respectively. Of the £6m National Monetization Pipeline (NMP) for FY2022-25, it is estimated that monetization of roadside assets will account for around £60m. NHAI was engaged to raise 43,979 crore from asset monetization in FY24.

The monetization of the ToT 11 and 12 packages is already in progress and NHAI is reviewing the offers.

Bids were received in June for the 361 km Lalitpur-Lakhnadon section of the NH26 in Madhya Pradesh and the 82 km Allahabad bypass.

A group of global investors including Canadian fund CDPQ, KKR, Cube Highways and domestic road operator IRB Infrastructure Developers are interested in acquiring 361km of highway assets in the National Highway Authority of India’s (NHAI) ToT 12 auction, ET reported last month.

To date, NHAI has awarded six TOT packages (TOT-1, 3, 5A1, 5A2, 7 and 9) and Rs. 26,366 crore from bids for 11 TOT packages. TOT packages 2, 4, 6, 8 and 10 were canceled due to bids being lower than the concession value (IECV or reserve price) originally estimated by NHAI.

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