
New Delhi: The Center plans to order new highway projects as part of the Bot Transmission model, if transport data generated through Electronic Collection System Fastag, shows that private developers can earn at least 15% annual toll yields, two people who realized this matter said.
Less rewarding projects, such as highway contracts that show less than 15% annual revenues, will be awarded on the hybrid annuity route (HAM) or engineering, contracting (EPC), where the government carries full or partial building risk and financing. On the other hand, as part of the Bot model, the private builder develops, operates and receives costs through tolls.
The aim of this step is to reduce the risk of investors in the construction of Greenfield Highway motorways, because the developer would be aware of the probable return on investment. This is expected to allow the government to issue more projects for the award under the shoe route, which is exclusively on private concessionaires. It is planned to make this route attractive to most prices on the highway and expect the private sector to participate more aggressively for these projects more aggressively.
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“According to the plan, the Ministry of Road Transport and Motorway (Morth) asked for its construction of motorways and the entity-national motorway office of India (Nhai) -Aby has made a new assessment of transport data for all upcoming highway projects so that projection of revenue can be calculated more precisely.”
“This would be used to separate the Highway Awards with sections protruding 15% or more yields under a growing route, while others (with less than 15% return) obtained under HAM or EPC regime,” the person added.
Questions E -mail E -mail Morth and Nhai on Friday remained unanswered until the press time.
Earlier message
Mint previously reported on the government plan to introduce a new agreement on the concession model (MCA) by the end of September. This step comes against the background of the shoe of projects in highway prices, which fall from the highest 90% to less than 10% ten years ago. Private investors have so far avoided the risk of highway construction and instead decided on projects that were awarded under the Ham and EPC models.
Together with the minimum return on investment for concessionaires on the highway, Morth also takes other measures, such as the extension of the rights to tolls on competing motorways to the same concessionaire, which builds a new section in the Green Pole, as Mint said. It has also introduced a transparent mechanism of compensation in shoe contracts, where any shortage in the planned income will be compensated by the government. A more structured mechanism of dispute resolution has also been created, with clarity in the payment for termination.
Also read | Bonanza for investors as new road builders can also get to the old toll
Experts say the shoe model sees the interest of developers.
“The shoe remains a critical model and the revived interest of developers reflects it. Developers are looking for balanced risk sharing framework and timely dispute resolution to ensure sustainable project supply,” said Jagannarayan Padmanabhan, head of the director and global manager, consultation, Crisil Intelligence.
Popular
The shoe (toll) was the most popular way to award motorways by 2014. In 2007 to 2014, only a shoe model was used to build motorways.
The model represented 96% of all projects awarded in 2011–12. However, this gradually decreased to zero, because the investment appetite for risk disappeared and several concessionaries faced liquidity problems to complete the projects obtained by introducing too ambitions. In 2018-19 and 2019–2020, no projects were awarded on the Bot route. Last time, Nhai tried to assign road projects to shoes in 2020, but was finally awarded in 2021. In FY24 and FY25, only a few shoe projects could award a road developer.
Also read | Govt was preparing for a new concession pact at the end of September to the end of September
“This is a welcome step. This has also been practiced earlier, and it is good to realize that this process is again emphasized. This will ensure that viable projects get under the shoe and others get under the HAM or EPC route,” said Singh, partner and head of national infrastructure in India.
According to an ICRA rating agency, from 2016 to 2025, the Ministry of Roads awarded about 110,000 km of projects, of which approximately 90,000 km (81.5%) were under the EPC route. This was followed by a Ham model, which represented 19,943 km or 18.4% of the total prices, while the shoe model represented only 0.1% of the contracts.
ICRA expects the EPC to be 60-65% of prices, followed by a hybrid anuma model (HAM) at 25% and 10% via shoe mode (toll) in FY2026.
(Tagstotranslate) Bot Model (T) Highway Projects (T) EPC Route (T) Hybrid Anuity Model (T) Privacy Developers (T) Risk of Investors (T) Transportation data




