The firms with lower debt cost have a better chance at securing the operation and maintenance rights for nine toll-operate-transfer (TOT) projects National Highways Authority of India (NHAI) has put on the block in a bid to raise around Rs 6,258 crore. The ability of the participants to generate high equity internal rate of return would critically hinge on the cost of debt. However, the firms bagging the assets will require refinancing at a later stage as long-term debt won't be available. Meanwhile, NHAI is looking at tweaking TOT model from the present 30 years concession period to 20 years. Another policy that the national highway builder is looking at modifying is reducing the valuation of highway projects to less than $1 billion.

Source: dna October 25, 2017 02:15 UTC