The concept, implemented by NHAI through the toll-operate-transfer (TOT) model, culminated in a bid offer of Rs 9,681 crore, about 50% above NHAI’s estimate of Rs 6,500 crore. NHAI’s roadshows across the world and international ratings by Moody’s and Standard & Poor’s have helped build investor confidence. Steps must be initiated to develop a cross-sector policy framework for recycling of assets after intense stakeholder engagement.NHAI’s model could form a basis for such policy. Eligible public assets must be identified and their potential of raising capital through asset recycling must be assessed. Finally, effective application of the asset recycling model, coupled with arobust contracting framework, seems very promising for the country in the long run.

Source: Economic Times March 07, 2018 18:22 UTC