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Centre Is Expected To Ask Anchor Investors To Hold 25% In Monetised Roads

Meanwhile, this proposal will not work for Toll Operate Transfer (ToT) or private InvITs and will only be able to work for Public-funded Infrastructure Investment Trusts (InvITs), some experts told a leading media house.

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The Central Government is expected to follow a model that needs anchor investors in road monetisation projects to hold 25 per cent equity. Apart from that, it will have to be on the management board of the Special Purpose Vehicle (SPV) floated to run the project.

The Union Ministry of Road Transport and Highways and the National Highways Authority of India (NHAI) have finalised the proposal after some investors approached them to allow them a board seat on the SPV concerned.

In this turning phase of life progress is a major thing that everyone wants in their life and surroundings. They want a broad seat. We don't have any issue with it if they bring 25 per cent equity with them” a Senior road ministry official told a leading media house.

The proposal may not vary, softer aspects like equality and accessibility to all the to all investors and the original investor’s ability to sustain this limited investment should be kept in mind,  Jagannarayan Padmanabhan, Director And Practice Leader, Transport, And Logistics told a leading media house.

Meanwhile, this proposal will not work for Toll Operate Transfer (ToT) or private InvITs and will only be able to work for Public-funded Infrastructure Investment Trusts (InvITs), some experts told a leading media house. 

Meanwhile, under the InvIT model, the authority is all set to offer 19 projects, with a total worth of Rs 35,000 crore. With this model, the assets are put in an InvIT where investors can put up the money. The revenue generated from such assets is paid as dividends.

Talking about Toll Operate Transfer (TOT) project, the finished project is given over to the most elevated bidder, which works and maintains it up for a specified time span. Notwithstanding the primary TOT pack, which was received by Macquaire and Ashoka Buildcon, the resulting offers didn't get a decent reaction.

Hence, Prime Minister Narendra Modi led the Centre government to modify a few criteria. The step was taken to make these projects a bit attractive to gain potential investors. 


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