Cube Highways bid the highest for third lot of TOT projects
Cube Highways has emerged as the highest bidder for the third of the toll-operate-transfer (TOT) projects offered by the National Highways Authority of India. The National investment and Infrastructure Fund (NIIF) quoted Rs 4,230 crore while Mumbai-based IRB quoted Rs 3,510 crore. TOT model in India has been developed to encourage private participation in the highways sector.
The government is banking on the TOT model for monetisation of completed road stretches. These contracts require private operators to manage and maintain roads while collecting toll on them. Since these are constructed projects, there is no construction or road acquisition risks involved the contracts.