Ashoka Buildcon has won a huge order from NHAI after emerging as the highest bidder for the toll-operate-transfer (TOT) projects. The company in joint venture with Macquarie had bided for this project. The company has quoted the bid project cost at Rs. 860.10 crore. This bidding was for the first batch of TOT and has 9 projects under it.
The NHAI was expecting the price of Rs, 6,258 crore, but post bidding. The price came up to Rs. 9,681 crore, which was almost 55 per cent above its expectations.
Ashoka Buildcon would look after the operation and maintenance of the project for 30 years. The engineering, procurement and construction contract for first two years for Ashoka will be Rs1,025cr.
Thefirst bundle for road monetization, released by the NHAI in October 2017, included five highways in Andhra Pradesh and four in Gujarat. At present, 75 operational national highway projects completed via public funding have been identified for monetization using the TOT model.
This model is applicable to engineering, procurement and construction and the built, operate and transfer (annuity) highway projects that were commissioned at least two years ago. Funds generated from highway monetization would be used for new infrastructure programmes such as the Bharatmala. The government expects to raise around Rs2 lakh cr through TOT in next five years, added the report.
On Thursday, the stock of Ashoka Buildcon opened at Rs. 224.90 per share and surged by 7.9 per cent and touched intra-day high of Rs. 236. It closed at Rs 228.75.