NHAI eyes Rs 4,995 cr from monetisation of 3rd bundle of highways under TOT model

The National Highways Authority of India (NHAI) is eyeing Rs 4,995 crore from monetisation of third tranche of 566 km of highways under TOT model, Parliament was informed Thursday.

The first bundle under the toll, operate, transfer (TOT) model had fetched NHAI Rs 9,682 crore.

"The National Highways Authority of India has invited bid for Toll Operate Transfer Bundle-3 on 13.06.2019 with bid due date of 11.09.2019 and Initial Estimated Concession Value (IECV) of Rs 4,995.48 crore," Road Transport and Highways Minister Nitin Gadkari told Lok Sabha in a written reply.

There are nine highway stretches of 566.27 km in TOT Bundle-3 in states of Uttar Pradesh, Bihar, Jharkhand and Tamil Nadu.

The first bundle under the TOT model had a total of nine stretches involving 681 km and was awarded to Macquarie.

The winning bid of Macquarie stood at Rs 9,682 crore, 55 per cent higher than NHAI's expectation of Rs 6,258 crore IECV.

The third auction assumes significance given that this is coming after an unsuccessful second bundle where investors quoted a discount to NHAI's base price following which it was cancelled.