TOT is a mechanism adopted by NHAI where the authority auctions operational assets (highways). The highest bidder deposits the money (bid amount) upfront with NHAI which it uses as capital to be invested in construction of new highways.
National Highways Authority of India (NHAI) has extended the date to submit bids under the second phase of Toll-Operate-Transfer (TOT) till December 19, a release by the ministry said.
"The submission of bids for second bundle of TOT will close on the 19th of this month," the release said.
Moneycontrol had earlier reported that the original bidding period date had been extended by a month till December 5 to let investors "complete their due diligence".
"This is a generic extension by a month at the behest of investors… They said they were yet to complete their due diligence before they could place bids," a source had told Moneycontrol.
Under the second phase, 586.55 km of national highways have been put on auction spreading across different states. These eight highways’ stretches are in Rajasthan, West Bengal, Gujarat and Bihar.
“These stretches have 12 toll plazas,” the release said.
TOT is a mechanism adopted by NHAI where the authority auctions operational assets (highways). The highest bidder deposits the money (bid amount) upfront with NHAI which it uses as capital to be invested in construction of new highways. Against the money, the bidder acquires the right to operate and maintain the highways via toll collection for 30 years.
According to the terms of concession agreement between NHAI and the concessionaire, divestment up to 49 percent is allowed till two years of the concession period, while change in ownership up to 10 percent is allowed after two years. The investor is also “de-risked from undertaking any construction” even as NHAI will conduct capacity augmentation at its own cost, if and when required.NHAI had mopped up Rs 9,681.5 crore from nine highway stretches during the first TOT bidding in March this year.