Home / Economy / News / Centre planning to further sweeten contract terms for TOT investors

Centre planning to further sweeten contract terms for TOT investors

The road developer will be tasked with the operation, maintenance and management of the contract

highways, nhai, roads, construction, transport

Premium

In the case of default, the developer, along with the Union government and lenders, will have an equal compensation right.

Megha Manchanda New Delhi

3 min read Last Updated : Sep 26 2020 | 6:06 AM IST

The Union government is planning to further sweeten contract terms for toll-operate-transfer (TOT) investors because it wants to devise a mechanism that would allow developers to have the first right, along with that of the lenders, to funds in the case of default. Besides, it wants to offer a TOT project in two packages of toll operatorship and anchor investment. The move is expected to attract international investors.

The road developer will be tasked with the operation, maintenance and management of the contract.

“A global pension fund or any other investment can park its funds in a TOT project and

Topics : Road Monetisation NHAI

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in