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Gadkari looks to revive BOT model for highway projects
Mint Mumbai
|September 05, 2023
Last time NHAI tried to assign road projects on a build-operate-transfer basis was in 2020
The National Highways Authority of India (NHAI) may bid out a tenth of its road awards next fiscal year through the BOT (build, operate and transfer) route, road ministry officials said on Monday, as Union road minister Nitin Gadkari highlighted the model for its efficiency.
In BOT projects, private investors take the risk of financing, building and operating highway projects over a concession period of 20-30 years. The developer then recoups investments through user charges or tolls, thereby taking some amount of financial risk. BOT projects have often seen the best road building technologies and highest efficiency.
Gadkari said BOT plays a critical role in enhancing the nation’s infrastructure quality, economy and employment prospects.
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