Hyderabad: The central government may have proposed the cancellation of tolls on highways, but the users of Hyderabad Outer Ring Road (ORR) are not likely to get the benefit of this in the near future.
As the current Toll Management System (TMS) contract is set to end on July 18, 2017, the Hyderabad Metropolitan Development Authority (HMDA) is ready call tenders in the proposed new system of Toll Operate Transfer (TOT).
Ever since the central government authorised National Highway Authority of India (NHAI) to monetize the operational highway projects through TOT model, state governments are evaluating the pros and cons of the new system.
The Hyderabad Growth Corridor Board of directors has agreed to call tenders on TOT basis, said the Chief General Manager (CGM) of Hyderabad Growth Corridor Limited, B Ananda Mohan. He also added that the proposed decision of central government to cancel the toll collection is not applicable to ORR since ORR is a special one.
The NHAI has identified 75 National Highway projects with an operational history of two years that could opt for the TOT model. Earlier these projects were functioning under Engineering, Procurement and Construction (EPC) or Built Operate and Transfer (BOT) model.
Invest India, the national investment promotion and facilitation agency promoted by the Department of Industrial policy and Promotion (DIPP) has suggested that Telangana state government can also auction operational projects to private players on TOT model and proposed Hyderabad Outer Ring Road as one of the prime candidates for this model.
At present HMDA is collecting Rs 192 crore (Rs 16 crore per month) toll tax annually. But the HMDA is expecting the revenue to be much higher now.
According to the TOT model, the private player would offer an upfront lump sum amount to HMDA in lieu of the right to collect user fee and maintain the project for a period of 30 years.
This cash inflow will help the HMDA to direct the funds to newer projects. The responsibility of maintaining the ORR would be completely passed on to the private player.
Features of Hyderabad ORR
158 km: Total length
120 kmph: Design speed
8 lanes: Right of way (ROW)
3 meters wide: Hard shoulder for emergency parking/breakdown vehicles
5 meters: Width of central median
25 meters: Width of Railway corridor
2 lanes: Service roads on either side
4 meters: Utility Corridor on either side
Expected benefits from TOT model
- Receipt of upfront payment from private player
- Quick option to re award projects that were earlier awarded under EPC or BOT model.
- Reduced burden on state government to monitor highway assets
- Better maintained highways due to private participation.
