BOT setback as ₹22,000 crore highway projects fail to draw private bidders

A set of highway projects worth around ₹22,000 crore has failed to attract bidders under the Build-Operate-Transfer model, underlining persistent concerns among private developers over risk allocation and contract enforcement.

The lack of response points to a widening gap between the government’s push to revive private participation in road construction and the industry’s appetite for such projects. Developers have flagged issues ranging from traffic risk assumptions to delays in dispute resolution, which continue to weigh on investment decisions.

The BOT model, once central to India’s highway expansion, has struggled to regain traction after earlier cycles left several projects financially stressed. While hybrid models have found greater acceptance, the government has sought to reintroduce BOT in an effort to reduce its own capital burden.

This latest outcome suggests that confidence has yet to fully return. Industry participants remain cautious, particularly in projects where revenue visibility is uncertain and contractual safeguards are seen as inadequate.

For policymakers, the message is clear. Reviving private investment will require more than project announcements. Greater clarity on risk sharing, faster dispute settlement and credible enforcement mechanisms may be necessary to restore trust in the model.