The MoRTH has issued a revised PPP framework that now permits large institutional investors to bid for BOT highway projects. Earlier, only TOT projects could attract such investors.
Key Developments
- Four highway projects worth ₹22,000 crore failed to attract bids under the earlier BOT model, prompting the policy revision.
- The new RFP allows Sovereign Wealth Funds, infrastructure funds, pension funds and private equity to participate.
- Bidder eligibility now includes natural persons, private entities, government‑owned entities, AIFs, foreign investment funds or any consortium thereof.
- Financial strength of institutional investors will be the primary assessment criterion; technical expertise can be sourced from concessionaires or engineering partners post‑award.
- The concession period remains at 20‑30 years, during which the concessionaire finances, builds and operates the highway before transferring it back to the state.
Important Facts
National highways are executed through multiple models: EPC, HAM,