Revamped BOT Model: Boosting Private Capex in India
By Rediff Money Desk, New Delhi May 21, 2024 15:23
India Ratings & Research (Ind-Ra) says the revamped BOT model is a strategic move to attract private capex, potentially exceeding Rs 1 trillion by 2030.
New Delhi, May 21 (PTI) India Ratings and Research (Ind-Ra) on Tuesday said the revamping of the built-operate-transfer (BOT) model is a tactical move to attract private capex, which is estimated to surpass Rs 1 trillion by 2030, as per the government.
According to the rating agency, during the past seven years, the government has successfully rolled out about 400 Hybrid Annuity Model (HAM) road projects in India, worth over Rs 4 trillion.
This approach has balanced risk appropriately between private and public partners, thereby boosting public-private partnership activity in the sector.
Also, the government's enhanced focus on monetisation via the National Monetisation Pipeline (NMP) has attracted foreign investors, including various sovereign wealth funds and pension funds, it added.
Ind-Ra asserted that developers need to be mindful of aggressive bidding, taking projects beyond the appetite of their balance sheet, and overestimating toll revenue for greenfield projects to protect them from volatilities in the longer run.
The road sector in India has been at the forefront of performance and innovation and has played a crucial role in shaping the country's economic growth trajectory, with a CAGR of about 14 per cent over the past decade, it said.
As per Ind-Ra, BOT model of road development will drive investments worth Rs 0.4 trillion-Rs 0.5 trillion in FY25.
According to the rating agency, during the past seven years, the government has successfully rolled out about 400 Hybrid Annuity Model (HAM) road projects in India, worth over Rs 4 trillion.
This approach has balanced risk appropriately between private and public partners, thereby boosting public-private partnership activity in the sector.
Also, the government's enhanced focus on monetisation via the National Monetisation Pipeline (NMP) has attracted foreign investors, including various sovereign wealth funds and pension funds, it added.
Ind-Ra asserted that developers need to be mindful of aggressive bidding, taking projects beyond the appetite of their balance sheet, and overestimating toll revenue for greenfield projects to protect them from volatilities in the longer run.
The road sector in India has been at the forefront of performance and innovation and has played a crucial role in shaping the country's economic growth trajectory, with a CAGR of about 14 per cent over the past decade, it said.
As per Ind-Ra, BOT model of road development will drive investments worth Rs 0.4 trillion-Rs 0.5 trillion in FY25.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- ARC Finance
- 1.51 (+ 2.72)
- 99106131
- Vodafone Idea L
- 8.27 (+ 1.72)
- 37910491
- Guj. Toolroom Lt
- 18.98 (+ 4.98)
- 33052379
- Srestha Finvest
- 0.81 ( -2.41)
- 24087791
- Filatex Fashions
- 0.69 ( -4.17)
- 20455844
MORE NEWS
CCI Clears Coal India in E-Auction Scheme Case
India's competition watchdog CCI dismissed a complaint against Coal India's e-auction...
HDFC Bank Loan Growth Rises 3% in Q3
HDFC Bank reports a 3% increase in loan growth in the December quarter, reaching Rs...
IDBI Bank Reports 18% Loan Growth in Q3
IDBI Bank saw an 18% increase in loan growth during the December quarter, reaching Rs...