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The Indian government is set to reintroduce the build-operate-transfer (BoT) toll model for nearly half of its national highway projects in the upcoming fiscal year, covering around 5,000km with an estimated investment of INR 75,000 crore. Officials said a revised master concession agreement (MCA) will make the model more investor-friendly by improving revenue predictability and providing better exit and compensation options. Key projects, including the Nashik-Solapur-Akkalkot corridor, will lead this initiative. The government expects this move to attract private funding and accelerate highway expansion across multiple states.
The Indian government is planning to use the build-operate-transfer (BoT) toll model for nearly half of the national highway projects scheduled for the upcoming fiscal year. Around 5,000km of roads, worth roughly INR 75,000 crore, are expected to be awarded under this framework. Officials said the decision aims to encourage private sector participation while optimising public expenditure. Advertisement
This marks a renewed focus on the BoT model, which had dominated highway project awards from 2007 to 2014 but declined significantly after investors faced challenges with traffic and revenue risks. In the past decade, Hybrid Annuity Model (HAM) and Engineering, Procurement and Construction (EPC) contracts became the preferred approach, while BoT projects reduced to less than 10% of awards. Past attempts to revive BoT projects around 2020-2021 had limited success.
A key development is the introduction of a revised master concession agreement (MCA) designed to address previous investor concerns. The MCA offers clearer terms on project duration, revenue sharing, compensation, and exit options, including the ability for developers to sell back projects to the government under certain conditions. Officials also cited improved traffic predictability, supported by higher FASTag adoption, as a reason for increased investor interest.
The government plans to award around 10,000km of national highway projects in the coming fiscal year, with BoT projects forming roughly half of the pipeline. One major BoT project already approved is a 374km access-controlled corridor connecting Nashik, Solapur, and Akkalkot in Maharashtra, with a total investment of INR 19,142 crore. In addition, around ten more projects worth approximately INR 50,000 crore, including corridors in Andhra Pradesh, Bihar, Tamil Nadu, and Kerala, are set for tendering. These initiatives are part of a broader MoRTH infrastructure pipeline valued at nearly INR 8.8 trillion through March 2028.
Officials highlighted that the revised MCA, together with toll system improvements, is expected to reduce risks for developers, improve investment predictability, and attract fresh private capital. Major infrastructure companies like Larsen & Toubro and IRB Infrastructure are seen as potential bidders, reflecting growing industry confidence. By reintroducing BoT projects with enhanced contractual safeguards, the government aims to leverage private investment while ensuring timely highway development and easing fiscal pressure.
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