"NHAI Poised to Surpass ₹10,000 Crore Auction Target"

The National Highways Authority of India (NHAI) is poised to surpass its target of raising INR 10,000 crore from the auctioning of completed highway projects in the fiscal year 2023-24. The authority has successfully bid out four bundles of projects as part of its monetization drive, raising around INR 16,000 crore.

In the latest development, NHAI opened financial bids on Thursday for two bundles of highway projects under the toll operate transfer (TOT) model for monetization. Cube Highways emerged as the highest bidder in one case, quoting INR 7,707 crore, which is 15% higher than the estimated price set by the authority. In the second bundle, IRB Infrastructure secured the top bid with INR 1,683 crore, approximately 1% higher than the estimated price.

This comes after NHAI auctioned two other bundles of completed projects under TOT in October, raising INR 6,544 crore. The recent round saw bids from six players for one bundle and five bids for the other, showcasing a keen interest among bidders to acquire completed projects for toll collection and operation during the contract period, according to a senior NHAI official.

The strong response to the monetization drive indicates a positive market sentiment and underscores the attractiveness of completed highway projects for private players. NHAI's proactive approach in leveraging the TOT model is expected to contribute significantly to infrastructure development and funding in the transportation sector.

ET