Traffic data to guide road project model

The Centre plans to mandate awarding new highway projects under the build-operate-transfer (BOT) model if the traffic data, generated through the electronic toll collection system FASTag shows that private developers can earn at least 15% annual returns from toll collections, two people aware of the matter said.

- Subhash Narayan

Less remunerative projects will be awarded under hybrid annuity model, or engineering, procurement construction route.

(MINT)

The Centre plans to mandate awarding new highway projects under the build-operate-transfer (BOT) model if the traffic data, generated through the electronic toll collection system FASTag shows that private developers can earn at least 15% annual returns from toll collections, two people aware of the matter said.

Less remunerative projects, such as contracts showing less than 15% annual returns, will be awarded under hybrid annuity model (HAM) or engineering, procurement construction (EPC) route, where government bears full or partial construction risk and funding. By contrast, under BOT, the private builder develops the road, operates it, and recovers costs with tolls.