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Covid-19 effect: Upcoming road projects may shift to PPP on weak govt funds

The company, which launched the country's first public infrastructure investment trust (InvIT) in 2017, launched its second Rs 4,400-crore private InvIT

Contractors will now be given funds every month, rather than on the basis of the milestone achieved

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3 min read Last Updated : Jul 28 2020 | 5:58 PM IST

With the government finances getting adversely affected due to the Covid-19 pandemic, there will be a shift towards PPP-based road projects, a top IRB Infrastructure official said.

Addressing the company's 22nd annual meeting virtually, the company's Chairman and Managing Director Virendra Mhaiskar said the firm will focus on BOT (build-operate-transfer)-based projects.

"The (coronavirus) pandemic has impacted government finances for foreseeable future, and, hence, the upcoming awards will likely shift more in favour of public-private partnership (PPP) model such as BOT or toll-operate-transfer (TOT) projects that are funded by private players, and away from the current hybrid annuity and EPC (engineering-procurement-construction)

Topics : road projects Infrastructure investment Trusts InvITs

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