Bids invited for Rs 310-bn highway projects in BOT model

16 Jan 2024 CW Team

The resurgence of the Build Operate Transfer (BOT) model in highway construction has been announced by the National Highways Authority of India (NHAI), which has initiated the bidding process for projects involving a combined investment of Rs 310 billion through this approach.

It is proposed that a total of 8 key highway stretches, including a greenfield access-controlled expressway, will be developed under the BOT model. This model, which had remained inactive for several years due to risk aversion among private investors, is now being revived. The total length of highways for which bids have been solicited is 517.4 km, and the expected total project cost is Rs 309.75 billion, to be precise. These projects were originally part of a list comprising 15 highway stretches totaling 937 km, intended to be awarded under BOT in the current financial year. The aggregate project cost of the highways in that list amounted to Rs 444.12 billion. Out of the original list of 15, four will now be developed using the Hybrid Annuity Model (HAM), and one will be executed through the Engineering Procurement Construction (EPC) mode.

The projects offered under BOT include a 6-lane greenfield access-controlled expressway between Agra and Gwalior, traversing through Uttar Pradesh, Rajasthan, and Madhya Pradesh. The estimated project cost for this 88.4 km expressway is Rs 38.41 billion. Bids have also been invited for other highways located in Maharashtra, Assam, and Telangana.

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