The toll, operate and transfer (TOT) model, an asset recycling model which enables completed road projects to be monetised, is now being initiated at the state level.
The toll, operate and transfer (TOT) model, an asset recycling model which enables completed road projects to be monetised, is now being initiated at the state level. While the Ministry of Road Transport & Highways (MoRTH) and the National Highways Authority of India (NHAI) are expecting bids for the first TOT bundle of National Highways in February 2018, Telangana state has become the first state to kick-off the asset monetisation exercise. This is the first TOT initiative being undertaken by a state and would set the pace for asset recycling, as recommended by the Kelkar Committee on public-private partnerships. It is also a credible way to raise extra-budgetary resources. The Hyderabad Growth Corridor (HGCL) has recently started the process to monetise the Nehru Outer Ring Road (NORR) in Hyderabad under this model, and appointed a consortium of LEA Associates South Asia (LASA) and CRISIL Risk & Infrastructure Solutions (CRIS) to support as transaction advisors.
The project is expected to garner significant extra-budgetary resources for Telangana, which can be used for development of other infrastructure assets.