HYDERABAD: According to an official, the Hyderabad Metropolitan Development Authority (HMDA) has proposed leasing the Outer Ring Road to a private organisation for a term of two to three decades at a cost of between Rs 4,000 crore and Rs 6,000 crore.

Eagle Infra India Limited now collects the toll monthly and sends Rs 24 crore to HMDA without adjustment. It had paid out Rs 351 crore in the 2019–20 fiscal year, Rs 310 crore in the 2020-21 fiscal year -- a decrease ascribed to a lockdown associated to the Covid–19 pandemic-- and Rs 421 crore in the 2017–18 fiscal year.

 HMDA would reportedly hire a transaction adviser (TA) to help them sort out the details of the long-term lease and oversee the bid process. HMDA sources claim that the consultant will be required to help HMDA with the sale of Outer Ring Road (ORR) assets. The transaction adviser would consider, among other things, projected traffic and revenue, cost of operation and maintenance, improvements based on highway and pavement design, and aspects related to road safety.

According to sources, the selected agency would also handle traffic management and accident safety in addition to obtaining the toll fee. It would manage all activities, make necessary repairs to the infrastructure, and perform extensive upkeep. The concessionaire would have to monitor the ORR and keep encroachments at bay.

The HMDA representative claimed that in order to increase revenue, the municipal authority was seeking to award the ORR project on a toll-operate-transfer basis. He claimed that India's National Highways Authority had created the model.

"This will assist in raising money that can be used to build infrastructure. If the ORR is offered on a 20-year lease, over Rs 4,000 crore can be earned, and about Rs 6,000 crore on a 30-year lease", it said. "Following approval from the government, the HMDA will publish a request for proposals and lease the ORR for an extended period of time.

KCR warns against those aiming to stoke social divide

Huge rallies mark the start of Telangana Unity Day celebrations

BJP Chief accuses KCR family of having role in Delhi Liquor scam