NHAI Floats Fresh Bids For Highway Monetisation In New ToT Approach

The National Highways Authority of India (NHAI) has issued tenders to monetise three separate highway stretches under its Toll Operate Transfer (ToT) model, signalling a shift in its approach to asset monetisation, reported Financial Express.

This move comes after the government unveiled its updated monetisation roadmap last month.

Earlier, ToT bundles typically comprised multiple highway stretches.

However, under the new model, each bundle now features just a single highway section, with lengths varying between 90 km and 145 km.

The income generated from these bundles will hinge on current toll revenues and future traffic projections over the next two decades.

According to the new strategy document, NHAI plans to offer three highway bundles each quarter.

These will include a smaller stretch aimed at fetching around Rs 2,000 crore, a mid-sized section with potential revenues of Rs 5,000 crore, and a larger one expected to bring in Rs 9,000 crore.

Bundle 21 includes the Asanpur-Forbesganj-Purnea section (139.3 km), while Bundle 22 offers the Purnea-Dalkhola-Raiganj stretch of NH-27 spanning Bihar and West Bengal (90.6 km).

Interestingly, these bids come despite recent statements from Road Transport and Highways Minister Nitin Gadkari that the government would pivot away from ToT in favour of Infrastructure Investment Trusts (InvITs) for monetising highways.

Since 2018-19, 16 rounds of ToT have raised Rs 49,005 crore by monetising 2,689 km of highways.

NHAI has also identified nine additional road stretches for monetisation through its National Highways Infrastructure Trust (NHIT).

With highways expected to contribute Rs 3.5 lakh crore towards the upcoming national monetisation pipeline, NHAI is gearing up to monetise assets worth over Rs 50,000 crore annually over the next five years.

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