Big vs small in BOT project offering; traffic volume may be key determinant

Experts feel that kick-starting the process with relatively smaller stretches will help to test waters

Topics
NHAI | National Highways | Ministry of Road Transport and Highways

Megha Manchanda  |  New Delhi 

The financial ability of companies and lower project risk could be the crucial determinants in the success of the new build-operate-transfer (BOT) model which the government is banking on to bring in private money to national highway project construction.

The National Highways Authority of India (NHAI) is likely to offer by month-end a 70-km long road stretch in Karnataka, costing around Rs 1,700 crore on BOT basis. The stretch appears to be smaller but companies say it is traffic and toll revenue and not the contract’s ticket size that would make a project ...

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First Published: Thu, October 15 2020. 15:50 IST
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