Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

Infrastructure

11,661.8575.5
Stock Analysis, IPO, Mutual Funds, Bonds & More

NHAI identifies projects worth Rs 30,000 cr to be offered on PPP mode

The NHAI has identified various stretches on a pan-India basis that will be constructed through the PPP mode on the build-operate-transfer (toll) basis, the Ministry of Road Transport and Highways said in a statement.

, ET Bureau|
Updated: Sep 19, 2019, 06.15 PM IST
0Comments
Agencies
NHAI
The Authority has already invited the proposal for annual pre-qualification for construction of 4 or 6 lane of national highways for these stretches, it said.
The national highways authority of India (NHAI) is set to offer around 950 kilometres of road stretches worth Rs. 30,000 crores on Build-Operate-Transfer (BOT), and has invited pre-qualification bids to gauge investors’ sentiments at a time when the government is working to revive public-private partnership (PPP) in the sector.

In BOT projects, private sector developers build a road using their own funds, operate it and then transfer it to the government after a specified period.

“NHAI will invite bids for these stretches after looking at the response for the annual pre-qualification proposal. This will help us gauge the sentiments of the investors,” a government official said, asking not to be identified.

“NHAI has identified various stretches on pan India basis which will be constructed through Public Private Partnership on Built Operate Transfer (Toll) Mode. These stretches have been selected on the basis of consultation with the perspective bidders,” the ministry of road transport and highways said in a statement on Thursday.

The authority has already invited the proposal for Annual Pre-Qualification for construction of four to six lane of National Highways for these stretches.

The identified stretches cover about 950 km with a cost of about Rs.30,000 Crore in the states of Andhra Pradesh, Haryana, Maharashtra, Karnataka, Tamil Nadu, West Bengal, Chhattisgarh and Madhya Pradesh.

“Certain modifications have also been made in the existing RFAQ to make it more industry friendly,” the government statement said.

These identified stretches will be bid out over the course of the current and next financial year, said the official quoted above.

The ministry of road transport and highways led by Union Minister Nitin Gadkari, has been working to revive BOT mode of project allocation.

To revive private investment in the roads sector, the highways ministry is also identifying the shortcomings of the Build-Operate-Transfer (BOT) mode of construction, Gadkari told ET in a recent interview.

ET reported on June 14 that the ministry was looking at making key changes to the BOT framework to evince response from private investors which has remained subdued for almost four years now.

The ministry is making changes to the termination clause of BOT projects, among other changes and is expected to soon issue guidelines to ensure that the project mode is successful.

Also Read

NHAI to check on liquidity of banks before HAM projects

NHAI to Invite Bids for 400 km of Roads

EPFO in talks with NHAI to enhance funding for road projects

NHAI, SBI in talks to monetise highways

NHAI seeks proposals to create project monetisation pipeline

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service