Ministry finds 53 road projects valued at Rs 2.1 trillion
ROADS & HIGHWAYS

Ministry finds 53 road projects valued at Rs 2.1 trillion

The highways ministry has identified 53 road projects valued at Rs 2.1 trillion to be awarded through a build-operate-transfer model. It was stated that bids have been invited for seven highways, totalling 387 km and worth Rs 270 billion, out of the 53 projects covering a length of 5,200 km.

The Ministry of Road Transport and Highways (MoRTH) revealed that a modified build-operate-transfer (BOT) project document would be released in the next month to attract private companies for investments in the highways sector.

The statement mentioned that currently, projects are being awarded using engineering, procurement, and construction (EPC) or hybrid annuity (HAM) mode due to challenges faced in the implementation of BOT projects.

BOT projects involve the risk of financing, building, and operating highway projects with a concession period ranging from 20 to 30 years. The statement outlined proposed changes, including modifications in the concession period based on actual traffic (PCU) as opposed to tolling groups of vehicles, a re-evaluation of actual traffic surpassing design capacity, and compensation for delays on the part of the authority.

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The highways ministry has identified 53 road projects valued at Rs 2.1 trillion to be awarded through a build-operate-transfer model. It was stated that bids have been invited for seven highways, totalling 387 km and worth Rs 270 billion, out of the 53 projects covering a length of 5,200 km. The Ministry of Road Transport and Highways (MoRTH) revealed that a modified build-operate-transfer (BOT) project document would be released in the next month to attract private companies for investments in the highways sector. The statement mentioned that currently, projects are being awarded using engineering, procurement, and construction (EPC) or hybrid annuity (HAM) mode due to challenges faced in the implementation of BOT projects. BOT projects involve the risk of financing, building, and operating highway projects with a concession period ranging from 20 to 30 years. The statement outlined proposed changes, including modifications in the concession period based on actual traffic (PCU) as opposed to tolling groups of vehicles, a re-evaluation of actual traffic surpassing design capacity, and compensation for delays on the part of the authority.

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