HYDERABAD: For an efficient long term Operation and Maintenance (O&M) of entire Outer Ring Road (ORR), the state government has mooted Toll Operate and Transfer (TOT) model for ORR project around Hyderabad on the lines of National Highways Authority of India (NHAI).
The government, through TOT, would lease out the 158 km ORR stretch to private players for 30 years. The TOT model or asset recycling of ORR project would provide an efficient O&M framework requiring reduced involvement of Hyderabad Metropolitan Development Authority (HMDA) in ORR project’s post-construction completion.
Under this model, the private player would offer an upfront lumpsum amount to ORR in lieu of right to collect user fee and maintain the project highway for a period of 30 years.
Further, corpus generated from proceeds of such project monetisation would be utilised by State Government to meet its fund requirements for future projects and developments.
HMDA officials told Express that benefits of TOT include receipt of upfront payment from private player which can be used for developing other green field projects. Reduce the burden on HMDA to monitor the assets, better maintained highway due to private participation.
The TOT model has been designed to create an opportunity for private sector to invest in low risk assets and at the same time provide for efficient operations and maintenance of ORR by private sector, check pilferage of toll revenue and channelise capital inflows for creating new road infrastructure, HMDA officials said.
This model would offer low risk moderate return opportunities and thus is expected to attract new investors who have otherwise been averse to investing in highway projects due to high construction risk, they added.