Traction seen in BOT projects after model concession agreement amendments

The National Highwa- ys Authority of India (NHAI) plans to offer 15 road projects worth Rs 44,000 crore covering 900 km for bids under the build-operate-trans- fer (BOT) mode in FY25. If success- ful, this could mark the comeback of public-private partnership pro- jects in highways.

The government had earlier this year amended the model conces- sion agreement (MCA) to make it attractive for the private sector to invest in road construction.

These projects will be included in the government’s plan to offer 53 projects worth over Rs 2.2 lakh cro- re, covering a route length of 5,200 km under the BOT mode over the next three to five years. “There is a lot of traction for BOT projects fol- lowing the amendments to the mo- del concession agreement and theministry will capitalise on this,” a senior government official told ET. Under the BOT mode, the success- ful bidder constructs, operates and maintains the awarded highway, recovering the investment through toll rights for a specific concession period. The BOT-toll model had ta- ken a back seat soon after the NDA government took charge.

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