MoRTH conference propels revival of BOT projects
ROADS & HIGHWAYS

MoRTH conference propels revival of BOT projects

In a bid to promote Public-Private Partnerships (PPP) for Build-Operate-Transfer (BOT) projects and streamline business operations, the Ministry of Road Transport and Highways (MoRTH) orchestrated a conference in New Delhi. This gathering included key industry players such as Concessionaires/Contractors, Highway Operators, Investment Trusts, and representatives from Bankers/Financial Institutions, as well as Technical and Financial Consultants from the road sector. The inaugural session was graced by Nitin Gadkari, the Union Minister for Road Transport and Highways, alongside dignitaries like Anurag Jain, Secretary, MoRTH, Santosh Kumar Yadav, Chairman NHAI, and senior officials from various departments and authorities related to road infrastructure.

During the conference, Nitin Gadkari expressed the commitment to revitalise the BOT model, aiming to make it more investment-friendly and enticing for private partnerships. He emphasised that this revitalisation would not only fortify road infrastructure but also have a positive impact on the economy by creating employment opportunities and reducing logistical costs.

The conference featured presentations by senior officials of the National Highways Authority of India (NHAI) regarding proposed modifications to the Model Concession Agreement (MCA) of BOT (Toll). These modifications aimed to address concerns raised by stakeholders and eliminate discrepancies in various aspects, including termination payments, Concession Period adjustments based on actual traffic, reconsideration of actual traffic exceeding design capacity, and defining termination payments related to delays and force majeure causes. A new provision for Buy Back in case of Additional Tollway/Competing Road was also introduced.

Currently, due to implementation challenges in BOT Projects, projects are predominantly awarded on Engineering Procurement Construction (EPC) or Hybrid Annuity Mode (HAM). To revive BOT projects, several initiatives such as Harmonious Substitution, One Time Fund Infusion, Rationalised Compensation, Premium Deferment, and allowing refinancing have been implemented. Looking ahead, 53 BOT (Toll) Projects covering a length of 5200 km and valued at Rs. 2.1 trillion have been identified, with bids for 7 projects covering a length of 387 km and worth Rs 270 billion already invited.

Aligning with the Government of India?s 'Vision 2047' Plan, numerous high-speed corridors are envisioned for development. The robust Public-Private Partnership in the road sector is considered pivotal to realising this vision, contributing significantly to the development, operation, and maintenance of a world-class National Highway Network in the country.

In a bid to promote Public-Private Partnerships (PPP) for Build-Operate-Transfer (BOT) projects and streamline business operations, the Ministry of Road Transport and Highways (MoRTH) orchestrated a conference in New Delhi. This gathering included key industry players such as Concessionaires/Contractors, Highway Operators, Investment Trusts, and representatives from Bankers/Financial Institutions, as well as Technical and Financial Consultants from the road sector. The inaugural session was graced by Nitin Gadkari, the Union Minister for Road Transport and Highways, alongside dignitaries like Anurag Jain, Secretary, MoRTH, Santosh Kumar Yadav, Chairman NHAI, and senior officials from various departments and authorities related to road infrastructure. During the conference, Nitin Gadkari expressed the commitment to revitalise the BOT model, aiming to make it more investment-friendly and enticing for private partnerships. He emphasised that this revitalisation would not only fortify road infrastructure but also have a positive impact on the economy by creating employment opportunities and reducing logistical costs. The conference featured presentations by senior officials of the National Highways Authority of India (NHAI) regarding proposed modifications to the Model Concession Agreement (MCA) of BOT (Toll). These modifications aimed to address concerns raised by stakeholders and eliminate discrepancies in various aspects, including termination payments, Concession Period adjustments based on actual traffic, reconsideration of actual traffic exceeding design capacity, and defining termination payments related to delays and force majeure causes. A new provision for Buy Back in case of Additional Tollway/Competing Road was also introduced. Currently, due to implementation challenges in BOT Projects, projects are predominantly awarded on Engineering Procurement Construction (EPC) or Hybrid Annuity Mode (HAM). To revive BOT projects, several initiatives such as Harmonious Substitution, One Time Fund Infusion, Rationalised Compensation, Premium Deferment, and allowing refinancing have been implemented. Looking ahead, 53 BOT (Toll) Projects covering a length of 5200 km and valued at Rs. 2.1 trillion have been identified, with bids for 7 projects covering a length of 387 km and worth Rs 270 billion already invited. Aligning with the Government of India?s 'Vision 2047' Plan, numerous high-speed corridors are envisioned for development. The robust Public-Private Partnership in the road sector is considered pivotal to realising this vision, contributing significantly to the development, operation, and maintenance of a world-class National Highway Network in the country.

Next Story
Infrastructure Urban

Our urban initiatives set a benchmark for projects across India

The Nagpur Smart and Sustainable City Development Corporation (NSSCDCL) has bagged an excellence award for being a leader in creating healthy streets in Indian cities. Soumya Sharma Chandak, Chief Executive Officer (CEO), tells R SRINIVASAN what led to this achievement and elaborates upon other successes and plans. Excerpts from the conversation:What key factors contributed to NSSCDCL winning the excellence award for creating healthy streets in India?We won this award for our efforts to suggest juncti..

Next Story
Infrastructure Urban

Construction Sector Results

The Indian construction sector demonstrated both growth opportunities and notable challenges in the first half of FY2024-25, driven by a mix of economic, operational and policy factors. The sector’s total consolidated operating revenue across all segments (Ultra Large, Large, Medium, and small construction companies) reached approximately Rs.70,871 crore in H1 FY25, compared to Rs.67,126 crore in H1 FY24, reflecting a year-on-year growth of about 5.6 per cent. When including Larsen & Toubro (L&T), the largest player in  the sector,..

Next Story
Infrastructure Transport

India must focus on building resilient road infrastructure

Vadodara-based firm Zydex Industries has developed a silane nanotechnology-based product for road construction that can resist cracking under heavy traffic loads and cyclic weather. The company is using nano-polymer and silane to make roads free of potholes and cracks, thanks to their anti-strip property and enhanced resistance to moisture damage. The company has also developed a technology to make aggregates waterproof, thus forming a skin-like layer that is water-resistant and prevents the formation of potholes. Himanshu Agarwal, Chief Operating Officer, Zydex Industries, speaks about g..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000