NHAI awards TOT bundles 11 and 12 worth Rs. 6,584 crore to enhance India’s national highway network
In a significant move towards bolstering India’s National Highway Network, the National Highways Authority of India (NHAI) has awarded Toll, Operate, and Transfer (TOT) Bundles 11 and 12, encompassing a total length of 400 km, for an impressive Rs. 6,584 crore. These bundles comprise the Allahabad Bypass on NH19 in Uttar Pradesh and the Lalitpur – Sagar -Lakhnadon section, spanning across Uttar Pradesh and Madhya Pradesh.
The first round of bids for these two bundles was called off, leading to the re-invitation of bids. In the second round, NHAI received bids that exceeded the initial round by Rs. 553 crore. Following the opening of financial bids on Friday, October 27, 2023, and with the approval of the relevant authorities, the Letter of Award was swiftly issued to the successful bidder the next day.
The TOT Bundle 11, covering the 84 km-long Allahabad Bypass on NH19 in Uttar Pradesh, was awarded to Cube Highways and Infrastructure Ltd. for a substantial Rs. 2,156 crore. Meanwhile, TOT Bundle 12, encompassing the 316 km-long Lalitpur – Sagar -Lakhnadon section traversing both Uttar Pradesh and Madhya Pradesh, was awarded to IRB Infrastructure Trust for a significant sum of Rs. 4,428 crore.
NHAI Chairman Santosh Kumar Yadav expressed his satisfaction with this achievement, highlighting the government’s support and encouragement in achieving national monetization targets. He emphasized that the Rs. 6,584 crore raised from these two bundles will significantly contribute to the development of a world-class National Highway Network in the country.
Under the TOT model, the concession period is 20 years, during which Concessionaires are responsible for maintaining and operating the stretches. In return, the Concessionaire will collect and retain user fees according to the prescribed fee rates under NH Fee Rules.
The TOT model has been developed to encourage private participation in the highway sector. NHAI has previously awarded contracts for tolling, operation, and maintenance of various National Highway stretches on a Toll Operate Transfer (TOT) basis. Notably, NHAI has already monetized 1614 km of projects for Rs. 26,366 crore (excluding TOT Bundles 11 & 12) through TOT and 636 km of projects for Rs. 10,200 crore through InVIT.
