Ministry of Road Transport and Highways (MoRTH) Revises Build-Operate-Transfer (BOT) Guidelines to Allow Institutional Investors

Key facts

• The Ministry of Road Transport and Highways (MoRTH) has modified the Build-Operate-Transfer (BOT) guidelines to allow large institutional investors to bid for highway projects.
• The revised norms permit sovereign wealth funds, pension funds, infrastructure funds, private equity, and Alternative Investment Funds (AIF) to participate in BOT projects under the public-private-partnership (PPP) model.
• Previously, these large-scale funds were only permitted to bid for Toll, Operate and Transfer (TOT) projects.
• The policy change follows the failure of four highway projects worth ₹22,000 crore to attract private bids due to concerns over contract terms.
• Under the new framework, institutional investors will be assessed on financial strength, while technical construction qualifications can be fulfilled through engineering partners or concessionaires.