NHAI invites bids to lease out eight national highways for 30 years

NEW DELHI: National Highways Authority of India (NHAI) has invited bids for leasing out eight operational national highways to private parties for collection of toll and maintenance of stretches for a period of 30 years.

The auction will be conducted under the toll operate and transfer (TOT) model, and the government is hopeful that several international private equity and pension funds will bid for the projects. NHAI is hoping to get Rs 5,362 crore through leasing out these highways, a government official said.

The eight highway stretches identified for bidding are spread across West Bengal, Bihar and Rajasthan, and have total length of 586 km. The TOT model has been developed to encourage private participation in the highways sector. Under the model, the concessionaire pays a one-time concession fee upfront, which allows him to operate and toll the stretch for the predetermined 30-year concession period.