HMDA gears up to lease ORR to private agency

Selected entity would operate and maintain the ORR through Public Private Partnership model

Hyderabad: Hyderabad Metropolitan Development Authority (HMDA) is gearing up to lease more than 158-km Outer Ring Road (ORR) to a private agency. The duration of the lease will be 30 years.

For this purpose, Hyderabad Growth Corridor Limited (HGCL) has begun the process of selecting an agency. It has invited applications from interested private entities.

The selected entity would operate and maintain the ORR through Public Private Partnership (PPP) model on a Toll, Operate and Transfer (TOT) basis from February next year.

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Agency to operate, maintain

The responsibilities of the agency include tolling, operation, management, and maintenance.

The selected agency will also take care of traffic management and safety during accidents.

Apart from it, the agency will be responsible for ensuring the highway free from encroachments.

Process to lease ORR

The pre-bid event will be held on November 29 at the HGCL building, Nanakramguda.

Those who are interested in bidding can submit the application on or before January 16, 2023.

Before the financial bidding that will take place on January 24, eligible bidders will be declared on January 23.

On January 28, a Letter of Award (LoA) will be handed over to the selected private entity and the agreement will be signed on February 20.

Under the TOT model, the government receives the upfront payment from a private agency that can be utilized for other projects. It will also reduce the government’s burden in maintaining the highway.

It is expected that the government will generate revenue between Rs. 8000 crores to Rs. 9000 crores from the bidding.

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