NHAI to Auction 300-Kilometer Road Stretch under Tolling, Operation, Maintenance and Transfer Model


The National Highway Authority of India (NHAI), known for its aggressive monetization of road assets, has announced the auction of a 300-kilometer road stretch under the Tolling, Operation, Maintenance and Transfer (TOT) model. The roads included in the auction are part of ToT 13 and ToT 14.

ToT 13 comprises the 28-kilometer long Kota Bypass (NH76) and the 81-kilometer long Gwalior-Jhansi (NH75) road stretch. ToT 14 includes the 60-kilometer long Delhi-Meerut Expressway (NH-334 DME) and the 51-kilometer long Delhi-Hapur section (NH-24) along with a portion of another road.

The TOT model has been implemented by NHAI as a means to monetize its existing operational road assets. Under this model, the rights for toll collection, operation, maintenance, and transfer of the road stretch are granted to the highest bidder for a predetermined period. The bidders are required to pay an upfront fee to NHAI, and in return, they are entitled to collect toll revenue and maintain the road during the specified period.

The auction of road stretches under the TOT model has gained significant traction in recent years as it provides an opportunity for investors to participate in the country’s infrastructure development while generating steady long-term returns. The successful implementation of previous TOT projects has showcased the potential and attractiveness of this model to both domestic and international investors.

The 300-kilometer road stretch up for auction is expected to garner substantial interest from investors looking to capitalize on India’s growing road infrastructure sector. The Delhi-Meerut Expressway, in particular, is a high-profile project that has already showcased its significance in improving connectivity between Delhi and Meerut. Its inclusion in the auction is expected to generate significant investor enthusiasm.

The NHAI has been actively working on monetizing its road assets to raise funds for future infrastructure development projects. The proceeds from the TOT auctions are utilized for further investment in the country’s road network and to fund new infrastructure initiatives. This strategy allows NHAI to leverage the value of its existing assets and attract private sector participation in the development and maintenance of roads across the country.

In recent years, NHAI has successfully conducted multiple rounds of TOT auctions, generating substantial revenue and attracting both domestic and international investors. These auctions have played a crucial role in channeling private capital into the road sector, leading to improved road quality, enhanced connectivity, and reduced travel times.

The upcoming auction of the 300-kilometer road stretch under the TOT model is expected to further strengthen NHAI’s monetization efforts and contribute to the country’s infrastructure development. The successful bidder will not only have the opportunity to operate and maintain the road stretch but also generate revenue through toll collection. This will ensure the continued development and maintenance of the road, benefiting both commuters and the overall transportation network.

The NHAI’s aggressive approach to monetizing road assets through the TOT model reflects its commitment to enhancing infrastructure and promoting private sector participation. The successful auction of the 300-kilometer road stretch will mark another milestone in the country’s road development journey and pave the way for future infrastructure investments.

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