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Hyderabad: Hyderabad is expected to get another record revenue through Toll, Operate and Transfer (TOT) of Outer Ring Road (ORR). Hyderabad Growth Corridor Limited (HGCL), which is engaged in the operation and maintenance of outer ring road, has decided to lease the 150 km long expressway on TOT basis for a period of 30 years in public, private partnership.
In this regard, HGCL has summoned bidders to execute the contract on lease. “As per our expectations, the 30-year lease will generate revenue of Rs 6,000-7,000 crore for HGCL,” said a senior HGCL official.
Currently, HGCL gives operation and maintenance contracts to private agencies on an annual basis. However, it had some hurdles for the company in executing the annual lease contract. HGCL has to invite bids from private agencies in advance every year for next year’s contracts and it takes a long time to finalize the budders.
For example, if the contract expires in March, bids have to be invited from December at least 90 days in advance. Apart from this, sometimes it has happened, in which some agencies approached the court for extension of the contract citing various reasons. To resolve all these issues, HGCL has now decided to extend the lease period to 30 years.
The office bearer said that the 30-year lease period has been approved in the recently held cabinet meeting and it is being done as per the guidelines of the National Highways Authority of India.
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( With inputs from www.siasat.com )