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

02 Apr 2026

Indian real estate attracts USD 1.4 bn institutional investments in Q1 2026: Vestian

Institutional investments in India’s real estate sector touched USD 1.4 billion in Q1 2026, marking the highest first-quarter inflow since 2022, according to Vestian. While investments fell 62 per cent quarter-on-quarter due to an exceptionally high base in the previous quarter, they rose 74 per cent compared to the same period last year, reflecting sustained investor confidence despite rising geopolitical and macroeconomic challenges.Commercial real estate remained the key driver of investment activity during the quarter, accounting for 80 per cent of total inflows, sharply higher than 38 p..

VECV crosses 1 lakh annual vehicle sales milestone in FY26

VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, has surpassed the 1 lakh annual sales mark in FY 2025–26, recording its highest-ever commercial vehicle sales performance. The company said it sold more than 100,000 vehicles during the year, marking a major milestone aligned with the original vision of the Volvo–Eicher joint venture.The strong performance was supported by demand across categories. Light and Medium Duty (LMD) trucks contributed 47,789 units, accounting for 46.1 per cent of total sales. Heavy Duty (HD) trucks recorded 26,867 units (25.9 pe..

Rodic Digital & Advisory partners SatSure to deploy EO intelligence in public sector

Rodic Digital & Advisory (RDA), the strategic advisory and digital transformation arm of Rodic Consultants, has signed a strategic cooperation Memorandum of Understanding (MoU) with SatSure to jointly pursue opportunities in India’s public sector. The collaboration aims to integrate high-resolution Earth Observation (EO) data and geospatial AI into government workflows to strengthen monitoring, compliance, and operational decision-making across key sectors.The partnership combines SatSure’s Earth intelligence capabilities with RDA’s expertise in government digital transformation and ..