Toll-operate-transfer Highways
Cube Highways enters Rs 3,500 cr financial deal with SBI
The firm was awarded nine road stretches with 2,265 lane kilometers across states in India last November, in the third Toll-Operate-Transfer round by NHAI
27 investors evince interest in new bundle of TOT project offered by NHAI
Nine highway stretches of 566.27 km in the states of Uttar Pradesh, Bihar, Jharkhand and Tamil Nadu are on offer in the third bundle
Toll-operate-transfer success unlikely to shadow M&As in the road sector
May help set valuation benchmarks
NHAI offering 12-13% IRR to concessionaire for first bundle of TOT highways
Profitability or the return on equity for the highway monetization contracts that the National Highways Authority of India (NHAI) is offering to the concessionaires is 12-13% of the equity, according to a ratings agency report. "The equity IRR (internal rate of return) of the first bundle of highways being auctioned under the toll-operate-transfer (TOT) model would range between 12% and 13%, based on the National Highways Authority of India's (NHAI) initial estimated concession value, an analysis by CRISIL Research shows. The level of bidding intensity will drive the final returns earned by the concessionaire," Crisil Research report said. The bundle comprises nine highway stretches in Andhra Pradesh, Odisha and Gujarat.The report said, a cluster of manufacturing industries and ports in Vishakhapatnam, Kakinada, Kandla and Mundra are expected to be the drivers of transportation demand. The economic corridor in the east coast is also expected to improve traffic potential in Andhra ...
