- 03 Oct 2022
- ICICIdirect Research
NHAI annulls highest bid of Sekura Roads for ToT Bundle 10 as it was below reserve price
NHAI has scrapped the auction for the tenth bundle of highway projects to be awarded to a private operator under ToT model after the highest bid of Rs 1,711 crore placed by Sekura Roads Ltd (backed by Edelweiss Infrastructure Yield Plus fund) was below the reserve price of the highway development agency. However, the highest bid of Rs 3,011 crore quoted by NIIF for ToT bundle 9 is “under consideration” though it was below the initial estimated value calculated by the authority.
Monetization of roads asset plays a critical role in NHAI's incremental awarding/construction activities, and cancellation of ToT bundels and/or receipt of less that expected response/ values to bundles may impact the activities going forward. The NHAI has so far raised Rs 31,200 crore through the ToT mode of monetising operating highway projects while NHAI has initially targeted to raise Rs 84,800 crore by offering 6,165 kms of highways under ToT by 2024.