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NHAI's highways auction might receive several offers: Report

Singapore-based Cube Highways had won the third toll-operate-transfer (ToT) auction in November 2019, with a bid of Rs 5,011 crore.

December 28, 2020 / 01:54 PM IST


The National Highways Authority of India (NHAI) might receive several bids for the fifth bundle of auctions under toll-operate-transfer (TOT) mechanism.

Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), I Squared Capital's roads platform Cube Highways and Edelweiss Yield Plus Infra Fund and other investors are mulling bids for toll roads located in Gujarat, according to a Mint report.

Moneycontrol could not independently verify the report.

CDPQ declined to comment when contacted by Mint, while Edelweiss and I Squared Capital had not yet responded.

Singapore-based Cube Highways had won the third ToT auction in November 2019, with a bid of Rs 5,011 crore. The bundle included roads in Uttar Pradesh, Jharkhand, Bihar and Tamil Nadu.


The Centre withdrew the fourth TOT bundle in September 2020.

Under the fifth bundle, the two assets will be offered for 20 years, during which the winning bidder will be responsible for maintenance and operation of the toll roads.

"While the initial deadline for bids was set for 23 December, it has been extended to 18 January as the interested bidders had sought for more data. Cube, CDPQ and Edelweiss are evaluating the bundle and are likely to put in bids for the same," a source told Mint.

This is the smallest bundle of road assets put up by the NHAI for sale under the ToT mechanism.

"This bundle is smaller than the ones that have been sold so far under the TOT process; so, many bidders are expected to turn up for these projects. The last bundle had struggled to find enough takers even after its size was reduced by half. They are still working out the best model for TOT, and hence they are now trying smaller batch sizes," a source told the paper.
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Tags: #India #NHAI
first published: Dec 28, 2020 01:54 pm
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