Highway firms scout for global allies

Business opportunities and limited capacity in the country are prompting companies to go abroad and hunt for a suitable partner to undertake operation, maintenance and tolling (OMT) of national highways.

Two infrastructure firms DSC and Feedback Ventures have already tied up with Frances Egis Road Operation and Portugals Brisa respectively to manage OMT business in the country. India has plans to award projects for construction of 37,050 km national highways by 2013-14, 60% of which will be operated, maintained and tolled by private firms. These roads will be operational within three years of construction, expanding business opportunities for highway developers. According to industry estimates, highway OMT services market will assume a size of R5,000 crore by 2016. National Highways Authority of India, the central body that supervises road construction, is awarding OMT work even on those existing roads that are currently maintained by the government. The current national…