NHAI awards 251 km Hyderabad-Nagpur corridor for ₹6,661 crore under TOT model

State-owned NHAI has awarded the 251-km-long stretch of the Hyderabad-Nagpur corridor under the TOT bundle model to Highway Infrastructure Trust for ₹6,661 crore, an official release said on Friday.

The financial bids for TOT Bundle-16 were opened on September 18, 2024, for 251 km long stretch on the Hyderabad-Nagpur corridor of NH-44 in Telangana, the release said.

The project has been "awarded to Highway Infrastructure Trust for ₹6,661 crores", its said.

The concession period of TOT bundle is for 20 years in which Concessionaire will be required to maintain and operate the stretch.

In lieu of this, the statement said concessionaire will collect and retain user fee for the stretch in accordance with prescribed fee rates under NH Fee Rules.

Commenting on the award of the TOT Bundle-16, NHAI chairman Santosh Kumar Yadav said, "The success rate of TOT model in FY24 was 100 per cent and we have seen very encouraging response from the bidders."

In line with the National Monetization Plan, NHAI’s total asset monetization program has crossed ₹1 lakh crore which includes ₹48,995 crore through TOT, ₹25,900 crore through InvIT and ₹42,000 crore through securitization.

The TOT model has been developed to encourage private participation in the Highway sector.

NHAI from time to time has awarded contracts for tolling, operation and maintenance of various National Highway stretches on a TOT basis.

In FY 2023-24, NHAI awarded four TOT bundles worth ₹15,968 crores against the monetization target of ₹10,000 crores for that fiscal.

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