Asset selection for toll-operate-transfer (TOT) model of road asset monetization, India
Press Information Bureau, Government of India, Ministry of Road Transport & Highways
The selection of assets is based on asset’s track record of exhibiting certainty in toll generation. As the assets are operating, concessionaires do not bear any developmental and construction risks.
Accordingly, the assets should (i) be operational with observable traffic demand and be supported by (ii) reliable traffic forecast with (iii) substantial capital expenditure already incurred thereby de de-risking the concession from development and construction risks.
As per the latest guidelines, the public funded highway projects which are operational and have toll revenue generation history of one (1) year after the commercial operations date shall be monetized through TOT model.
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