Why NHAI’s Toll-Operate-Transfer Model Led To A Spurt In Road Construction Contracts
Why the toll-operate-transfer model succeeded.
The National Highway Authority of India is unlikely to face any issues in monetising public assets through the toll-operate-transfer model as it’s publicly funded, and does not require companies putting their equity at risk.
That’s the word coming in from Vinayak Chatterjee, chairman of Feedback Infra Ltd. who stressed that the previous build-operator-transfer model failed as it required companies that won bids to finance projects, putting their balance sheets at risk. Now, however, the funding is coming from NHAI’s engineering procurement and construction programme, which is essentially public expenditure, Chatterjee explained.
The NHAI recently concluded the first round of bidding for its toll-operate-transfer model project which received a better-than-expected response.
Watch the full conversation here: