Business opportunities and limited capacity in the country are prompting companies to go abroad and hunt for a suitable partner to undertake operation, maintenance and tolling (OMT) of national highways.

Two infrastructure firms ? DSC and Feedback Ventures ? have already tied up with France?s Egis Road Operation and Portugal?s Brisa respectively to manage OMT business in the country. India has plans to award projects for construction of 37,050 km national highways by 2013-14, 60% of which will be operated, maintained and tolled by private firms. These roads will be operational within three years of construction, expanding business opportunities for highway developers. According to industry estimates, highway OMT services market will assume a size of R5,000 crore by 2016. National Highways Authority of India, the central body that supervises road construction, is awarding OMT work even on those existing roads that are currently maintained by the government. The current national highways network is 71,000 km. Experts believe this model could be followed in states, which have a highway network of more than 1.31 lakh kilometre.

?Tying up with technically sound partners is the way forward in the highway business. Till now, when firms ask for project loans, lenders do not insist on specifying the name of company that will operate and maintain the roads. But with the increase in road network and the volume of vehicles using them, I think banks will insist on specifying the company that will undertake operation, maintenance and tolling of roads,? DSC?s director (operations) Anhad Narula said.

DSC has created an OMT company with Egis by name of Egis Infra Management India. The JV firm is 55% owned by DSC and is currently operating Delhi-Gurgaon Expressway.

?Technology is evolving around the world and tie ups are required to keep a tab on the evolving technology. Otherwise it will take years to match the international standards,? Feedback Ventures’ managing director (transport) Parvesh Minocha said.

He is also vice chairman of Feedback Brisa Highways OMT, the JV firm between Feedback and Brisa. An official in Reliance Infrastructure said ?Many companies don’t have the in-house capability for OMT and are outsourcing such works.?