The Outer Ring Road lease price was decided but not disclosed for public because National Highway of India rules are never disclosed, said Arvind Kumar, Special Chief Secretary, MA&UD.
The concession period for bidders on Nehru Outer Ring Road (ORR) will decrease if the traffic projection growth increases after a stipulated time.
The time is not for 30 years as announced and it clear in the rules mentioned. If private companies approach legally also they may not get anything. The team will review every 10 years said Arvind Kumar, on recent Toll, Operate and Transfer (TOT) basis, through international competitive bidding.
In a press conference held at MA&UD office on the TOT bidding, he said that there should not be any speculation on the process as the rules according to National Highway of India and toll charges are being collected as per Toll Free Rules 2008. The extension due dates for bidders was also not favourable to any private agency but due to the requests it was extended.
The revenue collected on ORR toll collection has increased. In 2020-21 it was Rs 310.24 crore, in 2021-22 it was Rs 421.82 crore and in 2022-23 it was Rs 542.74 crore.
 In addition, Maharashtra State Road Development Corporation (MSRDC) has also done a TOT project with a 10-year concession period.
He said that toll charges will change or increase according to the rules but no private company can impose with their rules.
As per the generally accepted practice for computation of Initial Estimated Concession Value (IECV) for TOT projects, concession fee is computed based on the net present value of future free cash flows (ie.. toll revenue less O&M expenses. Income tax, changes in working capital, interest on short term loan taken, if any, etc) of the project by discounting with the weighted average cost of capital during the concession period.
