The National Highways Authority of India (NHAI) has scrapped the tender process for monetisation of two bundles of highways due to lower-than-expected bids and decided to start the process afresh, a senior official said on Friday.
The highest bids of Rs 6,031 crore that were received for the highways, which were grouped together in two bundles for monetisation through Toll Operate Transfer (TOT) model, were lower than the concession value estimated by the NHAI, the official added.
On Friday, the NHAI issued fresh tenders for Bundle 11 and Bundle 12. The last date for submitting bids in the second attempt is October 16.
Under the ToT model 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 316.8 km from Lalitpur in Uttar Pradesh to Lakhnadon in Madhya Pradesh will be transferred to the successful bidder.
The highest bid for Bundle 11 that came in the scrapped bidding process came at Rs 1850 crore while for Bundle 12 it was Rs 4181 crore.
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 45,000 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.