ORR bidding: Telangana govt defends process; says 'all rules duly followed'
ORR project bidding was conducted through an open bid, with Mazars Advisory LLP, a France-based consulting firm, being selected as Transaction Advisors in Oct 2022
By Newsmeter Network Published on 4 May 2023 2:15 AM GMT
Hyderabad: Principal Secretary of the Municipal Administration and Urban Development (MAUD), Arvind Kumar clarified that the bidding process for the lease of Nehru Outer Ring Road (ORR) was conducted transparently and according to the rules.
"The ORR bidding was done at the international level. Everything was done according to the rules. Anyone can check the ORR bid. ORR tenders were called as per National Highway of India rules," Kumar said,
Kumar said the government had extended the tender deadline three times for ORR bidding. He said the TOT (toll-operate-transfer) model in the form of mutual funds would be implemented, which is in line with the policy brought in 2012.
"The ORR spans over 158 kilometers and is one of the most effective, well-designed, and strategically located ring roads in the country. The construction of the ORR was started in 2006 and completed in 2018," said Kumar.
He said the TOT model for NHAI highways was approved by the Cabinet Committee on Economic Affairs in 2016. He said the success of NHAI's TOT projects and Maharashtra State Road Development Corporation's TOT project prove the viability of the model.
ORR project bidding was conducted through an open bid, with Mazars Advisory LLP, a France-based consulting firm, being selected as Transaction Advisors in Oct 2022.
Eleven prospective bidders participated during the bidding stage, and four bids were found eligible, with IRB Infrastructure Developers Limited quoting the highest bid of Rs 7,380 crores The government issued the Letter of Appointment to the said bidder on April 27, making it one of the largest asset monetization deals in India's road sector.
"The transaction marks one of the best bids finalized for the road infrastructure projects in the country in terms of revenue multiple. The ORR project is a unique opportunity for international companies to participate in the development of one of India's most important transportation infrastructure projects, and the bidding process was conducted transparently, with 142 days provided to interested parties to prepare their bids,” he said.
He emphasized that the government had followed all the due processes, and the decision to lease the ORR for 30 years was made in the best interest of the state.
