Changing BOT Model can drive Rs 0.4-0.5 trillion Investment
ECONOMY & POLICY

Changing BOT Model can drive Rs 0.4-0.5 trillion Investment

According to a research by India Ratings and Research, changes to the build-operate-transfer (BOT) model are expected to increase investments in the road industry by around Rs 40-50 lakh billion during the current fiscal year. The proportion of these projects from FY25 is probably going to rise with the resuscitation of the BOT model, which has elements that offer a considerable amount of risk reduction above the previous model.

According to this model, Ind-Ra projects that capex requirements would be between Rs 0.4 trillion and Rs 0.5 trillion in FY25. The rating agency also expects that these requirements will climb gradually to Rs 1 trillion by 2030.According to the ratings agency, the BOT model's redesign is a calculated strategy to draw in private capital, which is expected to exceed Rs 1 trillion by 2030.

About 400 hybrid annuity model (HAM) road projects worth over Rs 4 trillion have been implemented by the government in India during the previous seven years, helping to adequately balance risk between public and private partners and increasing the activity of public-private partnerships in this sector. Also, international investors, notably a number of sovereign wealth funds and pension funds, have been drawn to the government's increased focus on monetisation through the National Monetisation Pipeline (NMP). The industry has benefited from the government's sustained emphasis on infrastructure development, stable regulations, establishment of the National Bank for Financing Infrastructure and Development (NaBFID), encouragement of the use of surety bonds, and introduction of FASTags.

According to a research by India Ratings and Research, changes to the build-operate-transfer (BOT) model are expected to increase investments in the road industry by around Rs 40-50 lakh billion during the current fiscal year. The proportion of these projects from FY25 is probably going to rise with the resuscitation of the BOT model, which has elements that offer a considerable amount of risk reduction above the previous model. According to this model, Ind-Ra projects that capex requirements would be between Rs 0.4 trillion and Rs 0.5 trillion in FY25. The rating agency also expects that these requirements will climb gradually to Rs 1 trillion by 2030.According to the ratings agency, the BOT model's redesign is a calculated strategy to draw in private capital, which is expected to exceed Rs 1 trillion by 2030. About 400 hybrid annuity model (HAM) road projects worth over Rs 4 trillion have been implemented by the government in India during the previous seven years, helping to adequately balance risk between public and private partners and increasing the activity of public-private partnerships in this sector. Also, international investors, notably a number of sovereign wealth funds and pension funds, have been drawn to the government's increased focus on monetisation through the National Monetisation Pipeline (NMP). The industry has benefited from the government's sustained emphasis on infrastructure development, stable regulations, establishment of the National Bank for Financing Infrastructure and Development (NaBFID), encouragement of the use of surety bonds, and introduction of FASTags.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code