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BOT no more: Is the Build-Operate-Transfer model of road developing dead?

Participation in BOT projects — where private developers build a road using their own funds, operate it and then transfer it to the govt after a specified period — has been declining for five years now. Investors have been wary of putting money given the high risk factors, changing traffic flow on account of new roads coming up over the years being a major one.

By Nishtha Saluja, ET Bureau |Updated: February 27, 2020, 03.02PM IST
NEW DELHI: The government has been trying to revive the Build-Operate-Transfer (BOT) mode for attracting private investment in the roads sector, without much success. In FY 2020 alone, the government planned to award around 800 km of highway projects on BOT basis but has failed to attract investors, as a result of which the process has not even reached the
seeing any trace of highway projects awarded on the BOT mode, it may still take another couple of years after the government finalises the guidelines for these projects to pick up. "While EPC followed by monetisation is a good idea, we should not lose sight of BOT which only requires fixing some loopholes before it picks up," Guha said.

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