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IRB, Adani, Cube bid for second TOT package

The second package of roads to be bid out under the toll-operate-transfer route by the National Highways Authority of India (NHAI) has attracted three bids — IRB Infrastructure Developers, Adani Group and Cube Highways.

Ashish Sharma, member, finance, NHAI, confirmed the development to FE. The bids are expected to be opened on Thursday. An IRB Infrastructure spokesperson confirmed the company has lodged a bid alone and not in partnership with anyone.

Adani Group is a recent entrant in the roads sector. FE was the first to report on February 5 that Adani Group has roped in Krishna Prakash Maheshwari, former CEO of Essel Highways, to head the venture. Since then, Adani has won one project under the hybrid annuity model(HAM).

NHAI has set the base price for the second TOT package at `5,362 crore. In an e-tender published earlier, NHAI invited private players to participate in the auction for eight stretches of operational toll roads totalling 586.55km across Rajasthan, Gujarat, Bihar and West Bengal. The concession period is 30 years.
Experts said the bids may not be as attractive as the first TOT package where NHAI had received a bid amount of `9,681 crore against an estimated concession value of Rs 6,258 crore.

Recently, Vinayak Chatterjee, chairman, Feedback Infrastructure had tweeted that in the second package, the stretches of highways in the states of West Bengal and Bihar are the ‘key dampeners’. The growth rates in these states are much lower than the national average as a result of which toll collection and subsequent traffic growth are also expected to grow at a slower pace.

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© copyright — The Financial Express

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