Projects and Projects Finance

 Toll Operate and Transfer model - NHAI

With a view to monetise the operational national highways, the National Highway Authority of India (NHAI) introduced the Toll Operate and Transfer (TOT) model for partnership with private developers in the road sector. Under this model, NHAI passes on the toll collection rights and operation and maintenance obligations for 30 years to the private developer against payment of upfront, one-time, lump sum concession fees quoted by the private developer as part of the comprehensive bidding process. Projects under this model are awarded as a bundle of operational national highways, which allows the investor to offset the risks of one project against another. Since existing and operational roads are auctioned under the TOT model, it does not need developers with construction skills to participate. Continue Reading Toll Operate Transfer Model – Gateway to New Opportunities in Highway Sector

At least since 2012, there has been a fair amount of legal uncertainty on the ambit of powers of the Central Electricity Regulatory Commission (CERC) and the State Electricity Regulatory Commissions (SERCs) under the provisions of the Electricity Act, 2003 (the 2003 Act) to award what came to be known as a “compensatory tariff” in case of tariff-based competitively bid power generating projects.

The issue took centre stage in 2011-12 with the promulgation of regulations by Indonesia, which barred export of coal from that country below a certain benchmark price. A number of Indian power project developers had submitted aggressive tariff bids during 2006-2009 relying on the import of relatively cheaper coal from Indonesia to India to fuel their power projects.

Continue Reading SC Clarifies the Scope of Regulatory Power under Section 79 (1) of Electricity Act, 2003