Government to allow bundling of highway projects

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    Highway visioning plans

    Government is looking at bundling public-funded highway projects for monetization to ensure a minimum investment size of Rs 650 to Rs 975 crore. The move can garner about Rs 1 lakh crore. Bundling of projects may be undertaken on a case to case basis for implementing projects. This would enable the concessionaire to achieve economies of scale, synergy in operations and achieve an appropriate investment size, Ministry of Road Transport and Highways has said. It said based on market inputs, such bundlings could be done considering “geographical proximity of the National Highways stretches” besides “ensuring minimum investment size of Rs 650 to Rs 975 crore. Also, bundling should ensure adequate toll revenue potential, it said. Around 75 operational NH projects completed under public funding have been preliminarily identified for potential monetization using the toll operate transfer (TOT) Model. The corpus generated could be utilized by the government to meet its fund requirements regarding future development and operation and maintenance of highways in the country and can be used to address development/strengthening of highways in unviable geographies. NHAI has been given approval for monetizing public-funded National Highway (NH) projects, which are operational and are generating toll revenues for at least two years after the Commercial Operations Date (COD) through the TOT Model.

    Source: profit.ndtv.com
    Image source: fhwa.dot.gov

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