Conditions to raise money from highway soon – Conditions of Raising Money from Highway will come soon – Business Standard

Toll rights may start a plan for mudification of roads soon. The Center has almost fulfilled discussions about the toll-operate-transfer (TOT) system continuing in the present form. The scheme was stopped 2 months ago. There is a provision to hand over the national highways operating national highways to private traders under TOT and they work as toll collecting tolls, roads operations and maintenance and earning from additional toll revenue. Inwitt with this model has allowed some Indian and international investment funds to invest, so that they can make profits from roads running in the infrastructure sector. In February, Road Minister Nitin Gadkari and Ministry Secretary V Umashankar wrote a letter to NHAI saying that all the properties provided under TOT should be overall assessed. Also, all TOT segments were ordered to be banned until the comparative analysis between Invit and TOT was completed. A senior official said, ‘The ministry had informed NHAI about its concern. Comparative analysis has been completed and several rounds of talks have been held on it. The Ministry is very close to finalizing the policy about continuing this method. Gadkari has been very vocal about the concerns of the mudification model. He says that in this model, the concentive gets a lot of profit and the government gets very little share of it. Addressing a conference of the Highway Operators Association, Gadkari said in December 2023, “Investors who took projects in the TOT model promised us that they would bring their own investment. But our experience suggests that they came here and took loans from Indian banks. I am also aware of the internal return rates of some of these projects. Gadkari said that the TOT model is more in favor of concerts than NHAI, due to which we are using the invite model more. TOT is one of the largest mosquito models for the government. It also likes concert. Its stake in the Ministry’s Mudrijification Scheme is 38 percent. The sudden ban has affected 15 TOT schemes. In this, Adani Enterprises allegedly emerged as the most bidding company. The Ministry also introduced an alternative model of five -year toll collection rights in its letter. The official said, ‘This can also affect road safety. To give a new look to the highway, capital is required every five years and it has been observed that the more aggressive the bid will be, the more problems the expenses incur in giving a new look will come, as the margin of the concenes will be reduced. The shortage of concession means that the roads will be safe, as new contractors will take the work more seriously. First Published – May 12, 2025 | 11:34 pm IST related posts

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