NHAI to offer Rs.440 billion worth of BOT road projects in FY25

02 Jul 2024 CW Team

The National Highways Authority of India (NHAI) plans to offer 15 road projects worth Rs.440 billion, covering 900 km, for bids under the build-operatetransfer (BOT) mode in FY25.

If successful, this could mark the comeback of public-privatepartnership projects in highways. The government earlier this year amended the model concession agreement to make it attractive for the private sector to invest in road construction.

The 15 projects for this fiscal year are a part of the government’s plan to offer 53 projects worth over Rs.2.2 trillion, covering route length of 5,200 km, under BOT mode over the next three to five years.

There is a lot of traction for BOT projects following the amendments to the model concession agreement and the ministry will capitalise on this.

Under the BOT mode, the successful bidder constructs, operates and maintains the awarded highway, recovering the investment through toll rights for a specific period. Of 176 projects awarded in 2023- 24, only one project was on BOT mode while all the others were awarded on engineering, procurement and construction basis (EPC) or the hybrid annuity model

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