Steps to encourage BOT Road Projects
NHAI has taken several steps to rekindle the interest of private investors and lenders in the Build-Operate- Transfer (BOT) projects which include:
- Policy of one-time fund infusion to complete the projects.
- Policy of deferment of premium for financial stressed projects not able to meet subsistence revenue requirements.
- Policy of harmonious substitution for substitution of Special Purpose Vehicle (SPV) in consultation with lenders and concessionaire subject to certain conditions.
Apart from above, a new mode “Hybrid Annuity Model (HAM)” has been introduced where part construction cost is funded by NHAI and post construction, return of investor is assured through Annuities paid by Authority.
Further, NHAI is also trying to revive the private investments in the highway projects by amending the Model Concession Agreement for BOT model.
