NHAI has started PPPs, and grants concession on BOT toll & BOT annuity

31 Dec 2021 CW Team

Public private partnership (PPP) is a model where a government authority grants concession to a developer to construct, upgrade and/or maintain an infrastructure asset for a defined period. After the end of the concession, the asset is returned to the respective authority.

There are various modes of PPP, such as build-operate-transfer (BOT) toll, BOT annuity and BOT hybrid annuity. The National Highways Authority of India (NHAI) had started PPPs in the roads sector by granting road asset concession on BOT toll and BOT annuity. However, road developers and lenders faced a cash flow mismatch owing to shortfall in toll projections.

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