The National Highways Authority of India (NHAI) has invited bids for the fifth bundle of national highway projects under toll-operate-transfer (TOT) in the State of Gujarat.

While a sustained low-interest-rate regime is a challenge for operational HAM projects, the bank rate is expected to remain at low levels as the RBI monitors the situation to revive growth and mitigate the impact of COVID-19.

IRB MP Expressway Pvt. Ltd, a special purpose vehicle (SPV) of India’s largest highways infrastructure developer, IRB Infrastructure Developers Ltd, has successfully achieved the financial closure for its first and the country’s largest toll-operate-transfer (TOT) project, the Mumbai-Pune Expressway.

The timely monetisation of mature road assets will be a critical determining factor in plugging the shortfall in budgetary allocations and fetch requisite funding to support ambitious execution targets set for the Bharatmala programme

By fiscal year 2023, India will be looking at a whopping investment requirement of Rs 38.6 trillion in the infrastructure sector. Over a period of time, the government spending has completely overshadowed private sector investment which was 37 per cent in 2008, and a gradual downward curve between 2013 and 2017 was witnessed.

Nearly Rs 54 billion will be generated through the auction off the second tranche of eight completed national highway projects. The Toll Operate Transfer (TOT) will be responsible for the maintenance and will have the right to collect the toll on these stretches for 30 years.

The initiatives that will have a direct bearing on the pace of execution include awarding projects after securing 80 per cent right of way, expediting projects stuck midway, delegating the power to grant forest clearances to regional offices, filing online for clearances to construct road over bridges (ROBs) and road under bridges (RUBs) and increasing the limit on sand mining.

Sustained government thrust through policy changes, investments and proactive addressing of nagging issues, has placed the roads sector in what could be its best growth trajectory yet.

The last two decades witnessed highway infrastructure being developed on a massive scale in the country. Now the government has unveiled another huge new highway development programme (covering 83,000 km) under the Bharatmala Pariyojana, which will see a paradigm shift in highway development with focus on improving the efficiency of the national corridor and a long-term view on the highways network.