MoRTH revises BOT and TOT agreements to boost private sector investment

26 Mar 2024 CW Team

The Ministry of Road Transport and Highways (MoRTH) has introduced a number of revisions to the model concession agreements (MCA) for build-operate-transfer (BOT) and tolling, operation, maintenance, and transfer (TOT) projects. These changes aim to encourage private sector investment in road infrastructure and clarify existing agreements. Key amendments for BOT projects include providing construction support to ensure timely project completion and extending tolling periods to offset losses due to competing roads. The updated MCA also specifies compensation for force majeure events and termination payments if 40% of the project is complete during construction. Additionally, debt and equity provisions aim to align project costs with government projections. Furthermore, the authority will continuously access escrow account statements to prevent funding shortages and project delays. The road ministry notified that these amendments were made following extensive consultations with stakeholders and implementing agencies. Changes in TOT agreements include increasing the frequency of checks to three times and lowering the threshold for variation in toll collection to 5%. These adjustments ensure upfront modifications to the concession period based on toll collection variations. Akshay Purkayastha, Director of Consulting at CRISIL Market Intelligence and Analytics, views the amendments positively, particularly regarding debt obligations, capacity enhancement, and compensation clarity. However, the impact of these changes on BOT projects' revival remains uncertain. Under MoRTH, the National Highways Authority of India plans to auction 53 projects worth over Rs 2,200 billion, covering 5200 kilometres. Currently, projects predominantly follow engineering procurement construction (EPC) or hybrid annuity mode (HAM) due to implementation challenges with BOT projects.

Real Estate

22 Aug 2025

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..