NHAI to offer 1,400 km of road stretches on PPP

The National Highways Authority of India (NHAI) is, for the first time, giving operation, maintenance and transfer (OMT) of nine stretches on a public-private partnership (PPP). It is offering over 1,400 km of stretches under this model.

The stretches are Palanpur-Padhanpur and Padhanpur-Shama Khiyali on NH-14 (270 km), Porbandar to Jaitpur on NH-8B (117 km), Kota-Chittorgarh and Chittorgarh bypass (169 km), Swarupganj-Bakaria and Bakaria-Udaipur (119 km), Jhansi-Shivpuri and Shivpuri bypass to Kota (199 km), Dalkola-Gaya and Purnea to Fobasganj (169 km), Madurai-Paraguri (211 km), Kota to Rajasthan-MP border (103 km) and Rajkot to Bamanbor and Bamanbor to Bagodha (129 km).

Among the nine stretches, Requests for Qualification (RFQs) for three stretches has been issued and is being received for three more. For the other three, Requests for Proposal (RFP) have been received for two and RFP has been invited for one.
 

GOING THE PPP WAY
Stretch	Distance
Palanpur-Padhanpur & Padhanpur-Shama Khiyali	270 km
Porbandar-Jaitpur	117 km
Kota-Chittorgarh & Chittorgarh bypass	169 km
Swarupganj-Bakaria & Bakaria-Udaipur	119 km
Jhansi-Shivpuri & Shivpuri bypass-Kota	199 km
Dalkola-Gaya & Purnea-Fobasganj	169 km
Madurai-Paraguri	211 km
Kota to Rajasthan-MP border	103 km
Rajkot-Bamanbor & Bamanbor-Bagodha	129 km

The authority has come up with two schemes. Under the first, for financially viable projects, the highest bidder — who offers highest toll revenue and highest annual increase in it — would get the rights to collect toll and maintain the stretch. The second scheme, for financially unviable projects, the bidder who demands least maintenance grant (the same as viability gap funding, where the tolling revenue is not enough to match the expenditure incurred on maintenance, wins the right to maintain the stretch.

Currently, the maintenance of government-funded highways is done by sub-contractors on a cash basis. They are paid from toll collected by agents hired by the NHAI. Government-funded highways are roads where the toll is collected by the authority. The NHAI collects toll on roads built on an annuity basis.