NH-38 Tiruchy-Madurai Stretch: Adani bids highest for toll operation of 124km stretch

 CHENNAI: Adani Enterprises Ltd has emerged as the highest bidder for the 124-km stretch of the four-lane Tiruchy-Thuvarankurichi-Madurai section (NH-38) in the latest set of highway assets of the National Highways Authority of India (NHAI) that have been offered for monetisation through the Toll-Operate Transfer (ToT) mode.

Among the four contenders who bid for the ToT bundle-15, Adani has placed a bid of Rs 1,692 crore for the road stretches bundled together.

Under the ToT model, the right to operate, maintain and collect tolls for over 20 years on operational national highway assets is leased to a private entity against a one-time, upfront concession fee paid to the government.

The other three bidders for the ToT bundle 15 are IRB Infrastructure Trust, Epic Concesiones 3 Ltd, and Prakash Asphalting's and Toll Highways.

The ToT of the Tiruchy-Thuvarankurichi-Madurai section (NH-38) will be the second highway stretch to be monetised in the state. The first is the 243-km Madurai to Kanyakumari Section of NH-7, with toll plazas at Kappalur, Etturvattum, Salaipudur, and Nanguneri for 30 years starting October 20, 2020.

The NHAI has already floated bids for the monetisation of the Tiruchy-Thanjavur section of NH 83 and the Madurai-Tuticorin section of NH-38 under ToT bundle-19. It also plans to monetise the Chennai bypass whose toll plazas -- Vanagaram near Porur and Surapattu -- fall within the city corporation limits. The two plazas together have collected Rs 1,341 crore in toll fee as of March 2024, against the project cost of Rs 446 crore. These two plazas are among the five user fee plazas sought to be closed by the state government as they are located within the municipal corporation limits.

S Yuvaraj, president of Tamil Nadu State Sand Lorry Owners' Federation, said the NHAI monetising the highway stretches to collect toll in perpetuity is unacceptable. "We strongly oppose the Union government's move which would put more burden on the people. The state government has demanded the NHAI to close 32 toll plazas in the state where the project cost has been recovered. The NHAI has not only refused to close them but has even done away with the NH fees rules that mandate the reduction of user fees to 40 per cent after the end of the concession period. We demand the state government to approach the court challenging the NH Fee rules,” he said.