Hyderabad: ORR to be leased for 30 years, to generate revenue of Rs 6,000-7,000 crore
Hyderabad Growth Corridor Limited has decided to undertake Toll, Operations and Maintenance of ORR through Public Private Partnership on the Toll, Operate and Transfer basis
Hyderabad: Hyderabad is likely to set yet another record, this time in terms of the revenue generated through the Toll, Operate and Transfer lease of the Outer Ring Road (ORR) Expressway.
The Hyderabad Growth Corridor Limited (HGCL), which is engaged in the operations and maintenance of the ORR, has decided to undertake Toll, Operations and Maintenance of the 158-km expressway through Public Private Partnership (PPP) on the Toll, Operate and Transfer (TOT) basis for a period of 30 years.
To this effect, HGCL has invited bidders for executing the contract on lease. “As per our expectations, the 30-year lease will generate revenue of Rs 6,000-7,000 crore for HGCL,” a senior HGCL official said.
Currently, HGCL offers the operation and maintenance contract on an annual basis to private agencies. This fiscal, the lease contract generated revenue of nearly Rs 400 crore. But there were a few challenges for the organisation in executing the annual lease. HGCL had to invite bids from private agencies every year well in advance for the next year’s contract and this was consuming a lot of time in finalising the bidders.
For instance, if the contract period elapsed in March, bids had to be invited from December, at least 90 days in advance. This apart, there were a few occasions on which some agencies approached court to extend the contract, citing different reasons. To address all these issues, HGCL has now decided to extend the lease period to 30 years. “The Cabinet, which met recently, approved the 30-year lease period. This is being done as per the National Highways Authority of India guidelines,” the official said.
The HGCL has already conducted an online pre-bid meeting with prospective bidders to clear their doubts. One of the bidders observed that at a few ramp toll plazas, there was traffic congestion during peak hours. There was a need to widen the ramp at the toll plaza or increase the number of toll plazas. HGCL officials said land would be provided wherever available for the construction of additional toll lanes.
