In a change from their previous stance, road developers are now keen to bid for road projects if tendered out on build-operate-transfer (BOT) basis, provided National Highway Authority of India (NHAI) puts them out basis viability and where expectation of traffic is high.
Discounting all earlier challenges associated with BOT projects in terms of government not keeping its part of the obligation in public-private partnership, issues around high premium on projects bid out on BOT and bankers not willing to support BOT projects, developers said that bankers are ready to back these projects provided the termination clause in toll-operate-transfer (TOT) is made applicable to BOT projects.
A senior industry official told FE: “BOT is not being looked upon positively by banks because of the termination payment clause. In case of termination in a TOT project Read More
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