Tuesday, July 16, 2024
HomeHyderabadTelangana govt awards ORR to IRB Infra on TOT basis for Rs.7,380...

Telangana govt awards ORR to IRB Infra on TOT basis for Rs.7,380 crore

The Telangana Government announced on Thursday that it has awarded IRB Infrastructure Developers Ltd the Nehru Outer Ring Road (ORR), Hyderabad on a toll, operate and transfer (TOT) basis for 30 years for Rs 7,380 crore (USD 0.9 billion), in one of the largest asset monetization deals executed in the country’s road sector.

In the TOT, the highest bidder, IRB Infrastructure Developers Ltd, which is the country’s leading infrastructure developer in the highways sector, was awarded the Letter of Award (LOA) on Thursday, said Special Chief Secretary for Municipal Administration and Urban Development (MA&UD) Arvind Kumar.

The 30-year TOT agreement is expected to generate significant revenue for the state and boost infrastructure development in the region. Considering the revenue multiplier of the transaction value, it is one of the best bids for road infrastructure projects in the country, Arvind Kumar said.

The state government retains ownership of the asset under TOT. Moreover, the TOT asset monetization system serves two critical objectives, firstly, it unlocks value from public investments in infrastructure, and secondly, it taps private sector efficiencies in infrastructure operations and management. Also, the TOT will allow Telangana to utilize private sector investment to create new infrastructure. The senior MA&UD official said, the model is internationally accepted for asset monetization in which state governments retain ownership of assets.

Chief Minister, K. Chandrashekar Rao expressed happiness over the development. “This transaction will give a further boost to investment opportunities in the region and open doors for many other infrastructure and state development projects. These projects will create job opportunities and attract investments, leading to the overall development of the region. The successful bid confirms the confidence of investors in the robust growth of Hyderabad and future prospects and are affirming the pro-investor growth policies of the state government”.

Minister for MA & UD, Industries and ITE & C, K. T. Rama Rao said “The Telangana Government is committed to promoting private sector participation in the development of public infrastructure. The transaction showcases the potential for lucrative investment opportunities in the state, which is rapidly growing and evolving. With its favourable policies and supportive environment, Telangana is one of the most favourable states for the investment and is highly business-friendly. The state holds immense potential for investors and entrepreneurs alike. It is a prime destination for those seeking to establish or expand their business.”

 

 

 

 

 

 

(This story has been sourced from a third-party syndicated feed, agencies. Raavi Media accepts no responsibility or liability for the text’s dependability, trustworthiness, reliability, and data. Raavi Media management/ythisnews.com reserves the sole right to alter, delete or remove (without notice) the content at its absolute discretion for any reason whatsoever.)