BOT highway projects may go slow in future over concerns on funding

New guidelines for BOT projects are being worked out, making developers wait and watch

The National Highways Authority of India’s high-risk build-operate-transfer (BOT) highway projects may see their share in the overall road construction mix shrink in the next three years as financial institutions raise concerns over their funding.

“We will have to go slow, there is no demand for BOT,” an NHAI official told Business Standard. The official said even bigger road construction players are not willing to bet on BOT projects.

This means the authority will have to rethink its thrust on the BOT model. 

Hetal Gandhi, director, CRISIL Research, said, “In financial year 2018-19 (FY19), BOT awarding by NHAI was nil. Over the next