DR Ambedkar IAS Academy

Toll-Operate-Transfer Model

Toll_Operate_and_Transfer (TOT) model under which the Publicly funded projects operational for two years shall be put to bid wherein the right of collection and appropriation of the fee shall be assigned for a predetermined concession period (30 years) to Concessionaires (Developers/Investors) against upfront payment of a lump sum amount to NHAI. Operation and Maintenance (O&M) obligation of such projects shall be with the concessionaire until the completion of the concession period. Projects to be undertaken in the TOT model are to be treated as Public-private-partnership (PPP) projects.

What are the changes?

  • As a part of the changes, public funded projects– engineering, procurement and construction (EPC) and Build Operate Transfer (BOT) — that are operational for more than a year after beginning commercial operations can be monetized through TOT model. Till now, the model authorized NHAI to monetize such projects that were operational for atleast two years.
  • Now NHAI has been allowed to vary the concession period of toll projects between 15-30 years.

What are the benefits of the TOT Model?

The TOT Model allows NHAI to:

  • Ensure efficient management of constructed and operational NH projects through proper Operation and Maintenance (O&M).
  • Arrange for additional funds that are required for the achievement of targets under the Bharatmala Programme and other NH development works.
  • The model would facilitate efficient toll realization through private sector

Leave a Reply

Your email address will not be published. Required fields are marked *