State-owned NHAI plans to offer 15 road projects worth Rs 44,000 crore, covering 937 km, in the current financial year under the Build-Operate-Transfer (BOT) mode.
Earlier this year, the Ministry of Road Transport and Highways (MoRTH) introduced a revised BOT project document to attract private investment in the highways sector.
The projects include the Guwahati Ring Road with the Brahmaputra Bridge in Assam (project cost Rs 5,500 crore), the Kasarwadi-Rajgurunagar stretch in Maharashtra (Rs 5,954 crore), the Pune-Shirur road project in Maharashtra (Rs 6,170 crore), and the Armoor-Mancherial road project in Telangana (Rs 3,175 crore), among others.
In BOT projects, private investors finance, build and operate a highway project over a concession period of 20-30 years, recouping their investment through user charges or tolls.
BOT projects in India
No projects have been awarded in the current fiscal year so far due to the election model code of conduct. Of the 176 projects awarded in 2023-24, only one was under the BOT mode, while the rest were based on engineering procurement construction or the hybrid annuity model.
Recent BOT project changes include construction support for timely completion and longer tolling periods to offset losses from competing roads. The amended model concession agreement clarifies government compensation for force majeure events and provides for a termination payment during the construction period if at least 40% is complete.
(With PTI inputs)