The National Highways Authority of India (NHAI) has failed to attract any bidders for three major highway projects worth ₹18,884.69 crore under the Built, Operate and Transfer (BOT) toll model in Maharashtra and Gujarat, marking a setback to its strategy of reviving the model.
The projects, covering a total length of 912.3 km, were tendered in three packages. However, despite multiple extensions of the bid submission deadlines and revisions to concession agreements aimed at reducing investor risk, no proposals were received.
This development comes as NHAI seeks to scale up the BOT toll model while slowing down projects under the Hybrid Annuity Mode (HAM), which had gained popularity among developers due to its lower risk profile since its introduction in 2015.
Key Projects with No Takers
Gujarat Corridor: Construction of a 105.8 km six-lane access-controlled highway along the Sanchore–Tharad–Deesa–Mehsana–Ahmedabad stretch, estimated at ₹3,739.69 crore.
Maharashtra Package I: Development of a 152 km six-lane highway between Adgaon and Ahilyanagar, along with operation and maintenance (O&M) of 133.5 km of the Nashik–Ahilyanagar stretch, costing ₹6,890.55 crore.
Maharashtra Package II: Construction of a 222 km highway from Ahilyanagar to Hasapur and O&M of 299 km of existing highway stretching from Ahilyanagar to Akkalkot, valued at ₹8,254.45 crore.
Industry Concerns Persist
According to Praveen Sethia, Founder and Director of Infrastructure Advisors, the lack of participation highlights a disconnect between policy design and market expectations.
He noted that while NHAI introduced risk mitigation measures, they may not have fully addressed concerns from a developer’s perspective. He suggested that a more consultative and calibrated approach would be needed going forward.
Developers also pointed to limited time for due diligence, as key clarifications from NHAI were issued only in January, leaving insufficient time to evaluate project viability.
Challenges with BOT Model
Under the BOT toll model, private developers finance, construct, and operate highway projects, recovering investments through toll collection over a concession period.
However, the model has lost favour in recent years due to persistent challenges, including:
Delays in land acquisition
Environmental clearance hurdles
Traffic volatility affecting toll revenues
The absence of bidders for these projects underscores the continued hesitancy among private players and signals the need for further reforms if the BOT model is to regain traction in India’s highway development programme.