NHAI proposes changes in BOT model to lure private investors

NHAI has proposed changes in regulatory guidelines for allocating road projects under the build-operate-transfer model to revive private sector investment. Towards this, the authority has invited suggestions from road developers, lenders, bankers, industry bodies and other stakeholders on the revised draft guidelines. Major modifications proposed in the model concession agreement are related to capping of liabilities of either party, tightening of conditions precedent prior to declaration of the appointed date, and amendment in the dispute resolution mechanism. As per the proposed modifications, the authority will not issue work orders for highway projects under the public-private partnership (PPP) mode prior to completing 90 per cent land acquisition and obtaining all statutory clearances. Besides, no private contractor will be allowed to make claims higher than the total project cost.