The HMDA’s proposal to hand over the management of Outer Ring road (ORR) to private players under ‘Toll-Operate-Transfer’ mode, is officially shelved, after the urban development authority awarded the contract for toll collection to a new agency.
Eagle Infra India Limited, which has won the contract by standing as the highest bidder in tender process, would collect the toll for the coming 18 months, starting from March 1.
The previous contract was only for nine months, officials informed.
Development projects
The HMDA had, two years ago, proposed to hand over the ORR management to a private agency for 15 to 25 years, in return for a lump sum amount of ₹2,500-₹3000 crore. The funds were sought to be invested in various development projects that the authority has envisaged for the city.
Financial and technical consultants were appointed to carry out a feasibility study, and assist in calling for global tenders.
The idea was to take leverage of the pension funds from abroad, as the return of investment is much better here than in countries such as the United States, Canada and Australia, and investors would, for this very reason, be keen on funding the infrastructure projects of the developing country.
The HMDA would have been the first urban development authority in the country to adopt this route, if the proposal had gone through.
However, the proposal, castigated by many as it involved privatisation of ORR, has been lying with the government for over a year now. No decision has been taken as yet, the officials said.
