Tweaking BOT model can drive up investments worth Rs.40-50 trillion
ECONOMY & POLICY

Tweaking BOT model can drive up investments worth Rs.40-50 trillion

Reworking of the build-operate-transfer (BOT) model may drive up investments worth Rs.40-50 trillion in the road sector in the current financial year, India Ratings and Research (Ind-Ra) said.

Revival of the BOT model, with features that provide significant risk mitigation compared to the earlier model, is likely to increase the share of these projects from FY25.

Ind-Ra estimates capex requirements under this model to range between Rs.0.4 trillion-0.5 trillion in FY25 and the agency believes it would rise steadily to Rs.1 trillion by 2030.

The ratings agency said that revamping of the BOT model is a tactical move to attract private capex, which is estimated to surpass Rs.1 trillion by 2030.

While revamping of the BOT model is a welcome change, the impact of evolving infrastructure landscape such as competing roads and alternate modes of transportation (dedicated freight corridor and inland waterways) in bolstering BOT model remains to be seen.

Reworking of the build-operate-transfer (BOT) model may drive up investments worth Rs.40-50 trillion in the road sector in the current financial year, India Ratings and Research (Ind-Ra) said.Revival of the BOT model, with features that provide significant risk mitigation compared to the earlier model, is likely to increase the share of these projects from FY25.Ind-Ra estimates capex requirements under this model to range between Rs.0.4 trillion-0.5 trillion in FY25 and the agency believes it would rise steadily to Rs.1 trillion by 2030.The ratings agency said that revamping of the BOT model is a tactical move to attract private capex, which is estimated to surpass Rs.1 trillion by 2030.While revamping of the BOT model is a welcome change, the impact of evolving infrastructure landscape such as competing roads and alternate modes of transportation (dedicated freight corridor and inland waterways) in bolstering BOT model remains to be seen.

Next Story
Real Estate

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Next Story
Real Estate

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Next Story
Infrastructure Urban

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement