Hyderabad: The Telangana Government announced on Thursday that it has awarded Nehru Outer Ring Road (ORR), Hyderabad on a Toll, Operate and Transfer (TOT) basis for 30 years to IRB Infrastructure Developers Ltd. for Rs 7,380 crore (USD 0.9 billion) in one of the largest asset monetization deals executed in the country’s road sector.
The TOT Letter of Award (LOA) was issued to the highest bidder, IRB Infrastructure Developers Ltd, the country’s leading infrastructure developer in the highways sector, on Thursday, MA&UD special chief secretary Arvind Kumar stated.
The 30-year TOT deal is projected to generate considerable money for the state and assist regional infrastructure development.
Arvind Kumar said that it is one of the finest bids finalised for road-building projects in the country when the revenue multiplier of the transaction value is considered.
The state government retains ownership of the asset under TOT. The TOT asset monetization system also serves two essential objectives: first, it unlocks revenue from public infrastructure investment, and second, it harnesses private sector efficiency in infrastructure operations and administration. The TOT would also assist the Telangana government in leveraging private sector investment for new infrastructure development. The Senior MA&UD official said that it is an internationally recognised approach for asset monetization in which the state government retains ownership of the asset, a press note informed.
Telangana chief minister K Chandrashekhar Rao expressed jubilation over the development. “This transaction will give a further boost to investment opportunities in the region and open doors for many other infrastructure and state development projects. These projects will create job opportunities and attract investments, leading to the overall development of the region. The successful bid confirms the confidence of investors in the robust growth of Hyderabad and future prospects and are affirming the pro-investor growth policies of the state government,” he said.
State MA&UD minister KT Rama Rao said “The Telangana Government is committed to promoting private sector participation in the development of public infrastructure. The transaction showcases the potential for lucrative investment opportunities in the state, which is rapidly growing and evolving. With its favourable policies and supportive environment, Telangana is one of the most favourable states for investment and is highly business-friendly. The state holds immense potential for investors and entrepreneurs alike. It is a prime destination for those seeking to establish or expand their business ventures.”
