In a significant boost to India’s highway infrastructure, the National Highways Authority of India (NHAI) has awarded the Toll, Operate, Transfer (TOT) Bundle 16 to Highway Infrastructure Trust for ₹6,661 crore. The contract encompasses a 251-kilometer stretch on the Hyderabad-Nagpur corridor of National Highway 44 in Telangana.
The financial bids were opened on September 18, 2024, with Highway Infrastructure Trust emerging as the successful bidder. Under the 20-year concession agreement, the concessionaire will be responsible for operating and maintaining the highway segment. In return, they are entitled to collect and retain user fees in accordance with the National Highway Fee Rules.
NHAI Chairman Santosh Kumar Yadav expressed satisfaction with the outcome, stating that the TOT model has been crucial in enhancing the value of the country’s road network. “We are pleased to have raised ₹6,661 crore from TOT Bundle 16. The 100% success rate of the TOT mode in FY24 reflects the strong response from bidders,” he said. He also acknowledged the government’s support in achieving national monetization targets and reaffirmed NHAI’s commitment to this vision.
The TOT model is designed to encourage private sector participation by allowing investors to operate and maintain existing highway assets. In the fiscal year 2023-24, NHAI awarded four TOT bundles worth a total of ₹15,968 crore, surpassing its monetization target of ₹10,000 crore for the year.
Aligned with the National Monetization Plan, NHAI’s total asset monetization program has now crossed ₹1 lakh crore. This includes ₹48,995 crore raised through TOT, ₹25,900 crore through Infrastructure Investment Trusts (InvITs), and ₹42,000 crore via securitization.
The successful awarding of TOT Bundle 16 not only underscores investor confidence but also marks a significant step toward the development and maintenance of India’s critical highway infrastructure.
