The National Highways Authority of India (NHAI) has received two bids each for two bundles of highways it plans to monetise through toll operate transfer (ToT) model in the coming weeks.
The bidders for highways grouped under ToT Bundle 11 have received bids from Cube Highways and Oriental Structural Engineers. For stretches in the ToT Bundle 12 bids have come from global investment firm KKR’s Highways Infrastructure Trust and IRB Infrastructure.
TOT bundle 11 includes Allahabad bypass of the total length of 87 km and Bundle 12 houses a highway stretch of 316.8 km from Lalitpur in Uttar Pradesh to Lakhnadon in Madhya Pradesh.
Bundle 12 has the biggest block of highways that have been offered for monetisation. Under ToT model the winning bidder gets the right to collect toll on highways built by the NHAI for a specified period in lieu of upfront payment.
This is the second attempt of the NHAI to sell these stretches. It had earlier scrapped the tender process for the two bundles in September due to low bids.
The highest bid for Bundle 11 came in at Rs 1,850 crore while for Bundle 12, it was Rs 4,181 crore which was not acceptable to NHAI.
“Technical bids have been opened and after evaluation, financial bids will be opened in the first week of November,” a senior official said.
Bids for both the bundles were invited in twin envelope format – both technical and financial bids had to be submitted together.
The process for monetisation of two more bundles of highways ToT 13 and 14 are parallelly underway and last date for bids for the two highway stretches is October 31.
Bundle 13 includes Kota Bypass and Cable stay bridge on NH 76 in Rajasthan & Gwalior Jhansi section and a section of NH-75 (New NH 44) in 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.
The NHAI will invite bids for ToT bundles 15 and 16 by the end of December. Monetisation through ToT takes anywhere between six to eight months so the process for bundle 15 and 16 will only be completed in the next financial year. Highway stretches that will be offered for monetisation in these two bundles are being identified.
This financial year only highways under ToT bundle 11,12,13 and 14 would be monetised which could bring in Rs 10,000 to Rs 15,000 crore. Similar amount is expected by monetisation through National Highways Infrastructure Trust. Rest of the target of Rs 45,000 crore through monetisation in this financial year will be through asset-backed securitisation.