Collection of toll on the completed stretch of Outer Ring Road (ORR) will be delayed further with the municipal administration and urban development (MA&UD) department deciding to go in for fresh tenders for the multi-lane road.

The Hyderabad Metropolitan Development Authority (HMDA) had invited tenders in June for manual collection of toll tax for a period of one year for the 62 km ORR from Pedda Amberpet to Patancheru. Since there was only one bid, the HMDA had written to the MA&UD department in August for its approval.

However, the MA&UD department reportedly advised the authority to invite fresh tenders instead of accepting the lone bid as there could be legal problems. Now, the HMDA would have no option but to go for fresh tenders and complete the process within two months. After the finalisation of tenders, it might take another two months for construction of toll booths and other arrangements, which means collection of toll tax might begin only after February 2012. "We have not received any official communication from the MA&UD department till now," HMDA metropolitan commissioner Rajeshwar Tiwari told TOI.

Sources said HMDA was worried over loss of revenue for a few more months. The authority had started paying Rs 165 crore per half year to contractors of ORR under the annuity model and the amount of toll tax could have been helpful for the cash-strapped HMDA.

The earlier bidder, Eskon India Ltd, agreed to pay about Rs five lakh per month to the urban development authority excluding taxes after negotiations by the internal committee of the HMDA as the bidder filed negative bidding.

Officials fear that there would be lukewarm response for the fresh bids too as the manual collection was only for a year and for that the bidder has to invest for providing bids and other establishments. The bidders seek collection of toll for minimum three years. But the ORR officials proposed one year manual collection as the automatic toll management system (TMS) would come into operation within a year.