Road ministry revives focus on BOT
The Union road ministry plans to award road projects under the BOT model with easier terms to attract private investors and increase private sector participation in the sector. The government has revised rules to ease construction and traffic risks and will issue smaller awards requiring lower private investments. The ministry aims to award four to five BOT projects this fiscal year and more in the next to ensure that at least 10-15% of awarded projects in FY25 are fully-funded private sector projects. The HAM model, with reduced project sizes and limited financing by the private sector, is currently the most popular mode of awarding projects.
NEW DELHI : The Union road ministry plans to directly award road projects under the Build, Operate, Transfer (BOT) model with easier terms this fiscal year, aiming to attract private investors.