Industry Experts Says, Auction of 8 highways could well raise Rs 5,400 crore

The government is all set to start the auction of the second tranche of eight finished national highway projects, and expect to generate about Rs 5400 crore.

Recently NHAI has announced to plan and conduct roadshows in Canada and the US with an aim to pull the attention of international bidders. In fact, NHAI is expecting that these roadshows might also receive a god response in addition to the participation of pension and insurance funds that might be also interested to invest in these contracts. Important aspect to note is that the TOT (Toll-Operator Transfer) contractor will have the complete permission to collect and manage toll on these stretches for the duration of 30 years.

Many industry experts are considering this deal as one of the major and biggest foreign investments in India’s public infrastructure sector. Adding to that some even consider the auction of completed projects under the TOT model as the most unique and innovative mode as it would further help in nurturing funds. These funds would help in undertaking of the construction of development of national highway projects and reducing dependency on government expenditure.