Special Chief Secretary, Municipal Administration & Urban Development, Arvind Kumar explained that the TOT (Toll Operate Transfer) concessionaire for the toll collection on the Outer Ring Road (ORR) is not at liberty to increase the toll at his whim, and is bound by the NHAI rules.
Addressing a press conference organised on Wednesday to allay apprehensions about awarding the ToT contract, Mr.Arvind Kumar said the toll policy of the Telangana government is based on the National Highways Fee Rules, 2008, and toll collection on ORR will follow the same guidelines.
He defended the process of global tenders for awarding of the contract for 30 years, and said the bids represented the Net Present Value (NPV) of the future cash revenue estimates. NPV is arrived at after discounting inflation and overheads such as operation and maintenance expenditure, income tax, changes in working capital, interest on short term loans and other such.
