India’s youngest state Telangana has become the first state government to take up asset monetisation through toll-operate-transfer (TOT) initiative and has appointed transaction advisors for Hyderabad Outer Ring Road.
The TOT model, an asset recycling model which enables completed road projects to be monetised, is now being initiated at the state level in India.
While the Ministry of Road Transport & Highways (MoRTH) and the National Highways Authority of India (NHAI) are expecting bids for the first TOT bundle of National Highways in February 2018, Telangana state has become the first state to kick-off the asset monetisation exercise.
In a statement, rating agency Crisil said this is the first TOT initiative being undertaken by a state, and would set the pace for asset recycling as recommended by the Kelkar Committee on public-private partnerships. The rating agency viewed it as also a credible way to raise extra-budgetary resources.