MoRTH Opens BOT Highway Projects To Sovereign Funds And Institutional Investors

Ministry of Road Transport and Highways has revised eligibility norms for build-operate-transfer (BOT) highway projects, allowing sovereign wealth funds, pension funds, infrastructure funds and private equity investors to directly participate in highway development projects.

The policy shift comes after several BOT highway projects worth nearly Rs 22,000 crore reportedly failed to attract bidders, prompting the ministry to ease contract conditions and widen the investor base under the public-private partnership model.

Under the revised framework, institutional investors will now be assessed primarily on financial strength, while construction expertise can be fulfilled later through engineering partners or concessionaires. The move separates financial eligibility from technical construction capability, addressing a key concern of large long-term investors.

The revised norms are expected to revive private participation in the BOT model, which has faced challenges in recent years due to financing constraints, traffic risks and rigid concession agreements. The government views the model as important for expanding highway infrastructure while reducing pressure on public expenditure.