India Revises BOT Guidelines for Highway Projects

The Ministry of Road Transport and Highways has revised its guidelines for build-operate-transfer (BOT) projects, allowing big funds and large investors to bid, in a bid to attract private investments. The revision comes after four Highway projects worth ₹22,000 crore failed to attract bids from private companies under the BOT model due to concerns over contract terms.

The Ministry has allowed sovereign wealth funds, infrastructure funds, pension funds, and private equity to bid for BOT projects under the public-private-partnership (PPP) model, relaxing norms for investments in such projects.

According to the modified request for proposal (RFP) document, bidders can be natural persons, private entities, government-owned entities, or alternative investment funds, with the option to form a consortium.

The revision is expected to boost private investments in Highway projects, with the Ministry aiming to develop National Highways under different modes of execution, including BOT, toll, and hybrid annuity models. The court or relevant authorities are yet to respond to the revised guidelines, but the Ministry will likely proceed with the bidding process for the four stalled projects, with further developments expected in the coming weeks.