Govt Monetization policy: The Modi government of the Center can hand over the toll of two national highways to private companies under the monetization policy. The government has also invited bids for this. Let us tell you that due to the sale of these two tolls in the hands of private companies, about Rs 4000 crore will be deposited in the exchequer of the government.
According to a news in Economic Times, the government can soon give two more tolls in the hands of private companies and this will help the government to monetize about 4000 crores.
These roads will be auctioned
The Economic Times quoted sources as saying that the government is ready to monetise two road assets. After the National Highways Authority of India (NHAI) canceled its ToT 6 and 8 bundle auctions due to poor feedback, Toll-Operate-Transfer (ToT) 9 and 10 auctions will now be held. NHAI has invited bids for two bundles of TOTs, one road each.
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UP and MP have this toll
TOT 9 covers the 73 km Allahabad-Varanasi section of NH-30 in Uttar Pradesh. While TOT 10 offers a 125-km stretch of Gwalior-Shivpuri (NH-03) in Madhya Pradesh. The last date for bidding is 28 April.
Explain that under the TOT model, the right to operate, maintain and collect toll on National Highway properties over 15-30 years is leased out on a one-time, upfront concession fee paid to the government.
15 years time limit
One of the potential bidders for the property said that the industry price of TOT 9 could be ₹ 2,300-2,600 crore, while TOT 10 could fetch a price of ₹ 1,100-1,500 crore. The grace period of both the properties will be 15 years.
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These companies can bid
According to sources, domestic developers including Adani Road Transport, IRB Infrastructure, Prakash Asphalting and Toll Highway (PATH), DP Jain and Sekura Road can bid to buy the toll. Whereas internationally, investors in the list of buyers can include CDPQ, CPP Investments, Cube Highways, Macquarie and homegrown fund NIIF.