Toll Operate Transfer (TOT) Model : Awarded By NHAI
The National Highways Authority of India (NHAI) recently awarded two highway monetisation projects worth Rs 6,584 in the toll, operate, and transfer (TOT) mode.
- In 2016, the Cabinet Committee on Economic Affairs (CCEA) authorised the National Highway Authority of India (NHAI) to monetise public-funded national highway projects and approved the ToT model.
- In the TOT model, public-funded projects, operational for two years, are put up for bidding, wherein the right of collection and appropriation of fees is assigned for a predetermined concession period (30 years) to concessionaires (developers or investors) against the upfront payment of a lump sum amount to NHAI.
- Such assignment of rights shall be based on the toll revenue potential of the identified NH projects.
- Operation & Maintenance (O&M) obligations of such projects shall be with the concessionaire till the completion of the concession period.
- The concessionaires for such projects shall be appointed through a transparent and uniform procurement process within the ambit of a pre-defined and approved implementation framework.
- It will help in the utilisation of the corpus (generated from proceeds of such project monetisation) by the Government to meet fund requirements for future development and O&M of highways in the country, including in unviable geographies.
- TOT model has been developed to encourage private participation in Highway sector.