Nov 20, 2019 11:00 PM IST
New Delhi, Nov 20 (PTI) The federal government on Wednesday authorised amendments proposed to the Toll Function Switch (TOT) mannequin for nationwide highways.
The Cupboard Committee on Financial Affairs (CCEA) has given its approval to the amendments proposed within the TOT mannequin by the Nationwide Highways Authority of India (NHAI), Finance Minister Nirmala Sitharaman mentioned.
Public-funded nationwide freeway (NH) tasks which can be operational and have toll income technology historical past of 1 12 months after the industrial operations date (COD) will likely be monetised by means of the TOT mannequin, she mentioned after the CCEA assembly.
The monetisation will likely be topic to approval of the competent authority within the Ministry of Highway Transport and Highways/NHAI on a case to case foundation, she added.
The corpus generated from proceeds of such mission monetisation will likely be utilized by the federal government to satisfy its fund necessities concerning future growth and O&M (operations and upkeep) of highways within the nation.
The mannequin would facilitate environment friendly toll realisation by means of personal sector.
Round 75 operational NH tasks have been recognized for potential monetisation utilizing the TOT mannequin, and bundled into 10 separate bids to draw economics of scale for the personal sector.
This approval would guarantee a wider set of property for monetisation and offering a extra enticing mannequin for the traders.
Additional, the fund generated from such monetisation will likely be utilised for growth/O&M of highways within the nation, which might profit freeway customers all through the nation.
The authorised TOT mannequin authorised NHAI to monetise public funded NH tasks, corresponding to EPC/BOT (Annuity) tasks, that are operational and have a confirmed toll assortment historical past of at the very least two years.
The authorised TOT mannequin gives for a set 30-year concession interval, she mentioned.
NHAI has already monetised one bundle of tasks beneath TOT Mannequin, producing a income of Rs 9,681.50 crore for the federal government.
Nonetheless, the second bundle noticed deviation out there valuation of property from NHAI’s valuation. NHAI has carried out a number of rounds of discussions with the personal sector to cut back uncertainty within the mannequin.
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