Financial bis for NHAI's TOT assets to open this week

Singapore based Cube Highways, IRB Infrastructure Developers and Adani Group have submitted bids for the second Toll-Operate-Transfer (TOT) package of National Highways Authority of India's (NHAI's).

"Wednesday was the last day to submit bids and on Thursday we opened the three bids we had received," said an NHAI official. After scrutinising the technical bids, the authorities would then open the financial bids to select the highest bidder. The financial bid for the TOT will open this week.

Adani Infra India Limited has recently forayed into highway business and has been on a look for the inorganic growth. They have submitted their quote in tie up with Mhow (Madhya Pradesh) based Prakash Asphaltings & Toll Highways India Limited. Likewise, Cube Highways too has been in the process to acquire road assets in India from multiple infrastructure companies.

Earlier, an IRB Infrastructure Developers had shared with DNA Money that they would be participating in the latest TOT package, however, it would be uncertain if their bid would be along with Italian major Atlantia. In the first TOT bid, the Mumbai based road developer had tied up with Atlantia.

The second package's, floated in August, minimum expectation is of Rs 5,362 crore from the eight road assets in four states. The total kilometers of National Highways put together measures in this bid stands at 586.55 km. These road projects are in the states of Rajasthan, Gujarat, Bihar and West Bengal.

Due to the existing market conditions and liquidity crunch, the government twice-extended deadline for this package. Earlier, the response to this package was tepid. Industry observers commented that there is a possibility that this time the NHAI may not get as good as a response of above 50% as it received for the initial TOT package.

In February this year, for the maiden TOT package, NHAI had received four quotes from Ashoka Buildcon-Macquarie, Brookfield, Roads-National Infrastructure Investment Fund and IRB Infrastructure Developers-Atlantia. Ashoka Buildcon-Macquarie had emerged as the highest bidder with their bid of Rs 6,258 crore, which was around 55% higher than NHAI's expectation.

"Work is underway to come up with the third package of TOT. We may float the Request For Proposal for the subsequent one on achieving closure of the latest bids," said the official.

GEARING UP

Wednesday was the last day to submit bids and on Thursday the three bids received were opened