NHAI To Monetise Road Assets In UP And MP; Likely To Receive Bids Worth Rs 4,000 Crore

The National Highways Authority of India (NHAI) is likely to monetise two road assets via the toll-operate-transfer (ToT) 9 and 10 auctions, reports Economic Times.

The 73-km Allahabad-Varanasi stretch of NH-30 in Uttar Pradesh (UP) and the 125-km section of Gwalior-Shivpuri of NH-03 in Madhya Pradesh (MP) are to be offered under the ToT 9 and 10 auctions respectively.

Collectively, the two stretches are expected to fetch an enterprise value of around Rs 4000 crore. Both the assets will reportedly have a concession period of 15 years.

Adani Road Transport, IRB Infrastructure, DP Jain, Sekura Roads Prakash Asphalting & Toll Highways (PATH) are likely to be the major domestic bidders for the assets.

Meanwhile, global investors such as CPP Investments, CPDQ, Macquarie and Cube Highways will be additional competitors in the bidding war. The National Investment and Infrastructure Fund (NIIF) will also join the others to acquire the ToT rights for the two NH stretches.

The successful bidders are granted the right to operate, maintain and collect tolls over 15-30 years under the ToT model. They get the lease for the highway assets in exchange of a one-time concession fee that they pay to the government.