Sources said the decision was made at the last NHAI board meeting with the aim of better price discovery in all of these cases. The board has members from Niti Aayog and the Ministry of Finance, in addition to NHAI and the Ministry of Transport.
“It was decided that we should follow the standards of the Directorate of Investment and Management of Public Assets (DIPAM). We have therefore modified the tender documents and the model concession contract. We will also modify the tender for the monetization of sections of Bundle-4 according to the Toll Operation and Transfer (TOT) model, ”an official said.
He added that there is a reasoning that bidders can quote more when informed of the benchmark price in the tender document.
The NHAI has so far monetized two groups of completed projects attracting investments of around Rs 15,000 crore.
Meanwhile, officials from the Ministry of Roads said they had also developed a model for submitting projects on public-private partnership models and how the government funded. “Almost 60% of projects under NHAI are financially viable, so we can push them to attract private investment. About 20-25% of projects would require sustainability gap financing and the remaining 15-20% would need to be developed with full government funding. As soon as we build these roads, we can monetize them, ”said an official.