Street tasks on BOT mode wrestle to take off as govt but to border tips

NEW DELHI: The federal government’s plan to bid out street tasks underneath the build-operate-transfer (BOT) framework is prone to get delayed till subsequent monetary 12 months because the roads ministry is but to agency up the rules for allocating the tasks.

The rules are being re-drawn with an goal to make BOT tasks extra investor-friendly as the federal government seems to revive personal funding within the sector.


In BOT tasks, personal sector builders construct a street utilizing their very own funds, function it after which switch it to the federal government after a specified interval.

“It’s doable that we might not subject any bids on BOT this 12 months,” a authorities official advised ET, including that ultimate approvals to the revised tips had been but to return in. “We don’t see a degree in inviting bids except the rules are finalised since now we have made modifications in accordance with suggestions from buyers. We is not going to get optimum bids in any other case.”


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Street transport and highways minister Nitin Gadkari had mentioned in the beginning of the monetary 12 months that his ministry will take a look at reviving the BOT mode of mission improvement that has remained subdued for over 4 years now.

The Nationwide Highways Authority of India (NHAI), which initiated the method of constructing modifications to the BOT tips, had set a goal of awarding 600-700 km of street development tasks on the BOT mode within the present monetary 12 months.

BOT tasks usually require a minimum of Rs 1,000 crore of funding, and banks demand a minimum of 30% fairness from the concessionaire.

Successfully, the market is just not prepared for BOT tasks. The smaller gamers would not have the fairness that’s required, whereas international gamers with deep pockets don’t need to bear development dangers, the official mentioned.

“Given the current market situations, we’re not very hopeful of reviving BOT,” a second official advised ET, asking to not be recognized. “The current market situation by way of availability of each debt and fairness could be very tight, whereas appraisal norms of banks have additionally turn out to be stricter.”

An official question despatched to the ministry of street transport and highways didn’t elicit any response until press time Thursday.

NHAI has already prolonged the bid submission deadline for annual pre-qualification bids for BOT tasks a number of occasions as buyers sought extra time.