Centre To Open BOT Highway Auctions To Private Equity, Pension Funds

19 Feb 2026 CW Team

Allowing private equity and pension funds to participate directly in BOT auctions is expected to improve liquidity in the sector and to bring institutional investors with long duration mandates. Market participants anticipate that the participation of such investors could reduce reliance on short-term credit and support the completion of stalled projects. The Centre will need to balance investor protections with attractive returns to ensure competitive bidding. Developers may welcome the prospect of diversified funding while emphasising the need for clear risk allocation.

The policy change will require revisions to auction rules and to concession agreements to accommodate different investor timelines and exit strategies. Regulators and the road transport department are likely to consult with stakeholders to finalise eligibility criteria and performance safeguards. Officials have indicated that practical aspects such as bid bonds and revenue sharing will be calibrated to suit long-term investors. Legal advisers will play a role in adapting contract terms to suit new investor profiles.

Industry analysts expect the shift to draw additional capital into the road sector and to enhance asset monetisation through secondary transactions over time. Pension funds and private equity firms will evaluate projects on the basis of cash flow visibility, contractual clarity and regulatory stability. The Centre plans to publish the detailed framework soon and market participants will watch for signals on implementation. Observers will track transaction timelines closely and pricing dynamics.

The Centre has indicated that it will soon open the doors of build-operate-transfer (BOT) highway auctions to private equity firms and pension funds in an effort to attract long-term capital for road projects. The move is intended to broaden the investor base for infrastructure and to provide stable financing that aligns with the long life of highway assets. Authorities said the change seeks to complement bank financing and to accelerate project delivery. Allowing private equity and pension funds to participate directly in BOT auctions is expected to improve liquidity in the sector and to bring institutional investors with long duration mandates. Market participants anticipate that the participation of such investors could reduce reliance on short-term credit and support the completion of stalled projects. The Centre will need to balance investor protections with attractive returns to ensure competitive bidding. Developers may welcome the prospect of diversified funding while emphasising the need for clear risk allocation. The policy change will require revisions to auction rules and to concession agreements to accommodate different investor timelines and exit strategies. Regulators and the road transport department are likely to consult with stakeholders to finalise eligibility criteria and performance safeguards. Officials have indicated that practical aspects such as bid bonds and revenue sharing will be calibrated to suit long-term investors. Legal advisers will play a role in adapting contract terms to suit new investor profiles. Industry analysts expect the shift to draw additional capital into the road sector and to enhance asset monetisation through secondary transactions over time. Pension funds and private equity firms will evaluate projects on the basis of cash flow visibility, contractual clarity and regulatory stability. The Centre plans to publish the detailed framework soon and market participants will watch for signals on implementation. Observers will track transaction timelines closely and pricing dynamics.

Equipment

24 Feb 2026

Kabelschlepp India Installs Robotic VMC in Bengaluru

Kabelschlepp India, part of the Tsubaki Group, has installed a state-of-the-art Vertical Machining Center (VMC) integrated with robotic automation at its Bengaluru facility. The inauguration was held in the presence of Henning Preis, President & CEO, Kabelschlepp Group, Jörg Schulz, Vice President – Production, and Srinivas P. Kamisetty, Managing Director, Kabelschlepp India.The high-precision CNC VMC is designed for advanced milling, drilling, tapping and multi-axis machining. Equipped with a vertical spindle orientation, automatic tool changer and intelligent CNC control system, it en..

Infrastructure Transport

24 Feb 2026

Highway Delivery Reset!

Project delays and inefficiencies continue to bedevil the progress of India’s National Highways network. A multi-pronged reform agenda is needed to inject greater transparency and accountability at every stage – from planning and procurement to execution, maintenance and oversight. This article offers key recommendations and reform strategies that government stakeholders – from the Ministry of Road Transport & Highways (MoRTH) and the National Highways Authority of India (NHAI) to state agencies and oversight bodies – should pursue to put highway development on a better track.Decen..

Infrastructure Transport

24 Feb 2026

MSIDC Executes ₹37,000 Crore Road Programme

With Rs 37,000 crore worth of road projects under execution across Maharashtra, Maharashtra State Infrastructure Development Corporation (MSIDC) is driving one of the state’s largest infrastructure programmes. Dr Brijesh Dixit, Managing Director, discusses the institutional reforms, execution frameworks, financing strategies and technology adoption enabling timely, high-quality delivery, in conversation with PRATAP PADODE, Editor-in-Chief, CW.With over Rs 37,000 crore worth of road projects underway across districts – many under tight timelines – what institutional and executio..