The National Highways Authority of India is expected to raise a little over Rs 6000 crore in its first asset monetisation deal in the current financial year, when it completes the transaction for two bundles of highways in the next two to three weeks, a senior official said Thursday.
“The financial bids for two bundles of highways – Bundle 11 and Bundle 12 – have been opened and they are being evaluated. The process of awarding the highways to the successful bidders would take another two to three weeks,” he said.
These bundles are being monetised through Toll Operate Transfer model where the right to collect toll on an asset built with public funds is transferred to an outside investor in lieu of an upfront payment. This right is valid for 30 years and after that the asset would revert to its owner, NHAI.
Under ToT bundle 11, Allahabad bypass of the total length of 87 km and in Bundle 12 highway stretch of 300 km from Lalitpur in Uttar Pradesh to Lakhnadon in Madhya Pradesh will be transferred to the successful bidder.
“The highest bid for Bundle 11 is Rs 1850 crore while for Bundle 12 is Rs 4181 crore,” the official said.
In this financial year, the NHAI is expecting to raise Rs 10,000 crore to Rs 15000 crore from asset monetisation through ToT. From other models like Infrastructure Investment Trust and securitisation of road assets being built by Special Purpose Vehicle of NHAI. Overall NHAI intends to raise up to Rs 45000 crore through monetisation in 2023-24.
Meanwhile, in June the NHAI has invited bids for two more bundles of highways through the ToT route – Bundle 13 and Bundle 14.
Bundle 13 includes Kota Bypass and Cable stay bridge on NH 76 in the State of Rajasthan & Gwalior Jhansi section and a section of NH-75 (New NH 44) in the State of Madhya Pradesh and Uttar Pradesh. Total length of highways in this bundle is 110 km.
In Bundle 14 are housed two of the most lucrative sections of national highways, Delhi-Meerut Expressway of 60 km and Delhi Hapur section of 50 km. It also includes a highway stretch in Odisha on Binjabahal Teleibani section.
“There has been a strong investor interest in the two new bundles that have been put up for bidding,” the official added.
He said that two new bundles will be offered for bidding every quarter. The process of monetisation through ToT is long drawn and takes close to six months to complete.
The NHAI has drawn up a list of 46 projects that stretch over 2612 km for monetisation this financial year.