The expressway will come under TOT once there is stable flow of toll revenue
National Highways Authority of India (NHAI) is mulling to include Eastern Peripheral Expressway in future Toll-Operate-Transfer (TOT) bundle, once the toll collection from the expressway stabilises.
Official sources told Moneycontrol that the apex authority will monitor the expressway for some time before putting it up for auction.
“Eastern Peripheral will eventually go for TOT,” a senior official said, requesting anonymity. He, however, added that the gestation period is yet to be decided.
“It needs time… We need to monitor the toll being generated from the e’way. The bidders need to know how much revenue is coming from the project,” he said.
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NHAI will start charging toll on the 135-kilometer long expressway from June 15. The expected toll charges per km are Rs 1.4 for cars/jeeps, Rs 2.2 for light commercial vehicle, Rs 4.68 for buses/trucks, Rs 5.11 for 3-axle heavy machinery, Rs 7.35 for four to six axle machinery and Rs 8.95 for seven and above axle machinery. The toll proposed for the entire stretch stands at Rs 190 for cars and Rs 630 for trucks and buses.
TOT is a funding mechanism where operational assets such as highways are given to a concessionaire for a specified period to be operated and managed by them. The concessionaire has to pay an upfront lump sum amount under the contract to the owner which is deployed as capital for future projects.
NHAI successfully closed the country’s first TOT bidding in March, receiving Rs 9,681.5 crore. The bid, won by a joint venture between Sydney-based Macquarie group and Ashoka Buildcon, was for nine national highways spread across Gujarat and Andhra Pradesh. The total stretch under the hammer was 648 km.
The Rs 11,000 crore e’way is India’s first intelligent and green expressway circumventing the national capital. Inaugurated by PM Modi, on May 27, the expressway connects Kundli with Palwal in Haryana via Ghaziabad in Uttar Pradesh.
According to initial reports, approximately 5,000 trucks travelled via EPE within the first three hours of inauguration.
It is expected that the expressway will pave way for approximately 50,000 commercial freight vehicles to bypass Delhi resulting in decongestion of the city along with reduction in air pollution levels.