NHAI encouraging private investors and lenders for BOT projects
01 Apr 2020
NHAI has taken several steps to rekindle the interest of private investors and lenders in build-operate-transfer (BOT) projects, shared Union Minister for Road Transport and Highways Nitin Gadkari, according to a PIB release.
These steps include:
- Policy of one-time fund infusion to complete projects
- Policy of deferment of premium for financially stressed projects not able to meet subsistence revenue requirements
- Policy of harmonious substitution for substitution of special purpose vehicle (SPV) in consultation with lenders and concessionaire subject to certain conditions.
Apart from the above, the hybrid annuity model (HAM) has been introduced, where part of the construction cost is funded by the NHAI and, post construction, the return of the investor is assured through annuities paid by the authority.
Further, NHAI is also trying to revive private investments in highway projects by amending the Model Concession Agreement for the BOT model.
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