HYDERABAD: The HMDA has proposed to give the Outer Ring Road on long-term lease, extending to 20 to 30 years, to a private agency for an amount ranging from Rs 4,000 crore to Rs 6,000 crore, a senior official told Deccan Chronicle.
Presently, Eagle Infra India Limited collects the toll every month and remits Rs 24 crore to HMDA without revision. In the 2019-20 it had remitted Rs 351 crore, Rs 310 crore in 2020-21, the fall attributed to Covid-19 pandemic-related lockdown, and Rs 421 crore in the last financial year.
For working out the modalities of the long-term lease, HMDA would retain a transaction adviser (TA) for preparation of the required documents and bid process management, the official said.
According to HMDA sources, the consultancy would be asked to assist HMDA for monetisation of assets of the ORR. The TA would take into account traffic and revenue projections, cost of operation and maintenance, improvement based on highway and pavement design, road safety features among others.
Sources said the selected agency apart from collecting the toll fee would ensure traffic management and safety during accidents.
It would handle all operations, repair infrastructure and carry out major maintenance works. The concessionaire would be required to inspect the ORR and prevent encroachments.
The HMDA official said the municipal authority was working to award the ORR project on ToT basis to generate more revenue. He said the model was developed by the National Highways Authority of India.
“This will help generate funds which can be used to develop infrastructure. Nearly Rs 4,000 crore can be generated if the ORR is offered on a 20-year lease and about Rs 6,000 crore on a 30-year lease,” he said. “Once the government gives its nod, the HMDA will invite tenders and will lease out the ORR on a long-term basis.”