The National Highways Authority of India (NHAI) has awarded a significant contract for the 251-km stretch of the Hyderabad-Nagpur corridor under the Toll Operate Transfer (TOT) bundle model to Highway Infrastructure Trust for Rs 6,661 crore. This announcement was made in an official release on September 20, 2024, following the opening of financial bids for TOT Bundle-16 on September 18, 2024.

Under this project, the concessionaire is responsible for maintaining and operating the highway stretch for a 20-year concession period. In return, the concessionaire will be allowed to collect and retain user fees in accordance with the prescribed fee rates outlined under the NH Fee Rules.

Commenting on the successful award, NHAI Chairman Santosh Kumar Yadav stated, "The success rate of the TOT model in FY24 was 100 percent, and we have seen very encouraging responses from bidders." This project aligns with the National Monetization Plan, through which NHAI's total asset monetization program has now surpassed Rs 1 lakh crore. This includes Rs 48,995 crore from the TOT model, Rs 25,900 crore from Infrastructure Investment Trusts (InvIT), and Rs 42,000 crore through securitization efforts.

The TOT model has been instrumental in promoting private participation in the highway sector, allowing for effective tolling, operation, and maintenance of various national highway stretches. In the 2023-24 fiscal year, NHAI successfully awarded four TOT bundles totaling Rs 15,968 crore, exceeding its monetization target of Rs 10,000 crore for that year.

This latest development is a significant step forward in enhancing highway infrastructure in India, aiming to improve connectivity and facilitate economic growth through better-managed roadways.

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