Govt allows big funds to bid for highway projects

PTI New Delhi

The Ministry of Road Transport and Highways (MoRTH) has allowed large funds and investors to bid for build-operate-transfer (BOT) projects. The decision follows the failure of several projects to attract private investment due to concerns over contract terms. Earlier, these large funds were permitted to bid only for toll, operate and transfer (TOT) projects. The ministry has now expanded eligibility to include sovereign wealth funds, infrastructure funds, pension funds, and private equity to bid for BOT projects under the public-private partnership (PPP) model. 

In a modified request for proposal (RFP) document, MoRTH relaxed norms for investments in such projects. The ministry introduced the modified framework after four highway projects worth ₹22,000 crore failed to attract bids from private companies under the BOT model. 

National highways are developed under various execution modes, including BOT (toll), BOT (annuity), Engineering, Procurement and Construction (EPC), Infrastructure Investment Trust (InvIT), and the Hybrid Annuity Model (HAM). Under the BOT mode, the government provides a concession period of 20 to 30 years to finance, build, and operate highway projects.