Declining interest among private investors in road projects, implemented under BOT, resulted in a sharp fall in the project award during 2012-13.
During the above financial year, National Highways Authority of India (NHAI) was able to award projects covering 1,116 km, while 1,822 km got no bids.
Private players chose not to submit financial bids for 13 projects worth Rs 16,000 crore in 2012-13, though some of them were put on the block more than once.
So far in 2013-14, road developers did not show interest in three annuity-based projects worth Rs 1,900 crore despite the government assuring payment in such a model.
According to RP Singh, chairman of National Highways Authority of India, even annuity projects don't evince a response as there is a total lack of equity in the market.
In the last 13 months, as many as 17 projects found no takers because of the severe equity crunch plaguing infra firms, while the clampdown on mining has made projects near such belts unviable, say highways authority officials.
Industry observers cite the following reason for low interest among developers for highway projects: regulations on exit options are difficult, capital for many companies is blocked in existing projects and policy issues like land availability, environment clearance.