The National Highways Authority of India (NHAI) is gearing up to roll out 15 road projects valued at Rs 44,000 crore in the upcoming fiscal year under the build-operate-transfer (BOT) mode. This strategic move marks a significant revival of public-private-partnership (PPP) projects in the highways sector, leveraging recent amendments to the model concession agreement aimed at incentivising private sector investments.
According to NHAI officials, these 15 projects are part of a broader initiative to offer a total of 53 projects worth over Rs 2.2 lakh crore, covering a substantial route length of 5,200 km, over the next three to five years. This ambitious plan underscores the government’s commitment to revitalising infrastructure development through enhanced private participation.
“The traction for BOT projects has been bolstered by recent amendments to the model concession agreement, making them more attractive for private investors. NHAI aims to capitalise on this momentum,” stated a senior government official familiar with the developments. Under the BOT model, successful bidders will be responsible for the construction, operation, and maintenance of the awarded highways, recouping their investments through toll revenues over a specified concession period. This approach not only encourages efficiency in project execution but also transfers operational risks to the private sector, fostering accountability and timely delivery.
The resurgence of BOT projects comes after a period where such initiatives had dwindled, primarily due to project delays and financial constraints faced by developers and lending institutions. Recent policy revisions, including extended tolling periods and clearer guidelines on compensation during force majeure events, aim to mitigate these challenges and attract robust participation from private players.
“In the current fiscal year, no BOT projects were awarded until recently due to electoral constraints. However, NHAI anticipates accelerated momentum in project awards as administrative processes normalize,” the official added. Key amendments to the BOT framework include enhanced support mechanisms for timely project completion and provisions for compensation clarity under force majeure circumstances, ensuring greater investor confidence and project viability.
The renewed emphasis on PPP in infrastructure, particularly in the roads sector, aligns with India’s broader development goals and underscores the role of private investment in meeting the country’s growing infrastructure demands. As NHAI progresses with its ambitious roadmap, stakeholders anticipate a transformative impact on India’s road network, driving economic growth and connectivity across regions. As stakeholders await further details on project timelines and bidding processes, the market outlook remains optimistic, with expectations of robust investor interest and competitive bidding for these critical infrastructure projects.
