Highway biggies in NHAI shortlist for toll-road deals

GMR, Reliance Infrastructure, IRB Infrastructure, Oriental Structural Engineering (OSE) and Gayatri Projects have been shortlisted for direct bidding of 21 proposed operate, maintain and transfer (OMT) contracts the National Highways Authority of India (NHAI) plans to put on the bidding block.

An OMT contract essentially involves collecting toll and using the proceeds for providing essential safety, emergency and maintenance services.

According to the NHAI shortlist, GMR can put in financial bids for OMT contracts worth Rs7,000 crore directly, without having to qualify in the technical round.

Among the others, Reliance Infrastructure can bid directly for Rs5,250 crore, IRB Infrastructure for Rs4,100 crore, OSE `2,320 crore and Gayatri Projects Rs3,000 crore.

The players will be eligible for maintenance of two-, four- and six-lane highways.

NHAI had got 80 applications in response to the request for qualification of 21 proposed OMT projects. Of these, 32 applicants have been shortlisted.

The shortlist would be valid for the next six months.

“We have already given an option to the applicants that they may get back to the authority if they are not satisfied with the threshold capacity given to them based on their technical evaluation,” said an NHAI official.

The other companies shortlisted include Soma Tollways (Rs2,900 crore), Ashoka Buildcon (Rs1,586 crore) and IL&FS Transportation (Rs5,134.66 crore).

In the current fiscal, the NHAI plans to award 3,000 km OMT contracts.

Industry estimates the size of the OMT services market to be around RS5,000 crore by 2016. With over 143 toll plazas currently under operation in the country on a 9,000 km stretch, the immediate opportunity up for grabs is on 90 of them, which are public funded.

Construction of 35,000 km highways in the next five years planned by the government will only add to the opportunity.

Companies have already made the first moves to tap the opportunity. Integrated infrastructure services company Feedback Ventures has entered into a joint venture with Brisa, Auto-estradas de Portugal earlier this year for OMT services. New Delhi-based DSC Ltd has also entered into a JV with Egis Road Operation of France.

The O&M company thus formed, Egis Infra Management India, will manage the complete operation and maintenance of road and other infrastructure projects owned by public or private sector clients in India.