Hyderabad: Under asset recycling, Hyderabad Metropolitan Development Authority (HMDA) is working at awarding the Outer Ring Road (ORR) project on toll-operate-transfer (TOT) basis to generate more revenue.
Under the TOT model developed by National Highways Authority of India (NHAI), the concessionaire will be given the rights to collect toll, and take up operation and maintenance. This will help generate funds, which can be used to develop new infrastructure.
Nearly Rs 2,500 crore can be generated, if the expressway is offered for 20-year lease and about Rs 4,000 crore can be generated on a 30-year lease, said HMDA Commissioner T Chiranjeevulu. Such fund can be utilised for taking up different developmental works.
The plan was placed before the HMDA Board and received in-principle consent. HMDA hopes that the move will help it generate more revenue. The government is examining the proposal and once it is approved, plans are afoot to float tenders, Chiranjeevulu said.
ORR is one of the major revenue generators for HMDA. Last year, it fetched Rs 191 crore through toll collection and this rose to Rs 312 crore this year. The entire 158 km of ORR became operational recently after long-pending works at Ghatkesar and Kandlakoya junctions were completed.
Municipal Administration and Urban Development Minister KT Rama Rao complimented HMDA for introducing reforms that helped increase the revenue for the body, which once was cash-starved.