NHAI Awards Rs 6,661 Crore Contract for 251-km Hyderabad-Nagpur Corridor Under TOT Model

The National Highways Authority of India (NHAI) has granted the 251-kilometre Hyderabad-Nagpur corridor project to Highway Infrastructure Trust. This decision, made under the Toll-Operate-Transfer (TOT) bundle model, involves a financial commitment of Rs 6,661 crore. The financial bids for this TOT Bundle-16 were opened on 18 September 2024, focusing on the NH-44 stretch within Telangana.

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Concession Period and Responsibilities

The concession period for this TOT bundle is set at 20 years. During this time, the concessionaire is tasked with maintaining and operating the highway section. In return, they will collect and retain user fees based on the rates outlined in the National Highway Fee Rules. This arrangement aims to ensure efficient management and upkeep of the highway.

NHAI's Monetization Achievements

NHAI Chairman Santosh Kumar Yadav highlighted the success of the TOT model in FY24, noting a 100% success rate and positive bidder response. The NHAI's asset monetization efforts have surpassed Rs 1 lakh crore. This includes Rs 48,995 crore from TOT, Rs 25,900 crore via Infrastructure Investment Trusts (InvIT), and Rs 42,000 crore through securitization.

The TOT model is designed to boost private sector involvement in highway projects. NHAI has consistently awarded contracts for tolling, operation, and maintenance of various national highway stretches using this model. In FY 2023-24 alone, four TOT bundles worth Rs 15,968 crores were awarded, exceeding the fiscal target of Rs 10,000 crores.

This initiative aligns with the National Monetization Plan, which seeks to leverage private investment for infrastructure development. By involving private entities in highway management, NHAI aims to enhance operational efficiency and service quality across India's road network.