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In the last two years, seven build-operate BOT projects have been able to tie up funds, stated an official release.
Modes of delivery for implementing National Highway (NH) projects are Build Operate Transfer (BOT)-Toll, BOT-Annuity, Hybrid Annuity and Engineering Procurement and Construction (EPC).
BOT (Toll) remains the default mode of delivery subject to project viability on case to case basis.
Challenges
Some of the challenges faced by BOT projects are lack of equity with developers, over leveraged balance sheet of the developers, equity funded through borrowing by parent lender, stress on the existing road infrastructure loan portfolios of financial institutions (FIs)’s, corporate debt restructuring effected in many special purpose vehicle (SPV) debt and sectoral exposure norms of financial institutions getting exhausted.
Major steps undertaken include emphasis on better project preparation including land acquisition, undertaking major policy initiatives and simplification of procedure for project appraisal, exit policy for concessionaires, amicable settlement of disputes, addressing issues for languishing projects, extensive coordination with line Ministries/Departments, promoting innovative project implementation through hybrid annuity model.
This information was given by the Minister of State for Road Transport & Highways P Radhakrishnan in a written reply to a question in the Rajya Sabha today.
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