Govt Prioritises Build-Operate-Transfer Model to Elevate Highway Quality

In a significant policy shift, the Union government has decided to prioritise the Build-Operate-Transfer model for upcoming highway projects, signalling a renewed push towards private sector participation in infrastructure creation. The move comes as authorities reassess past execution frameworks and place greater emphasis on durability, accountability and lifecycle performance of national highways.

Under the Build-Operate-Transfer model, private developers finance, construct and maintain highways for a defined concession period before transferring the asset back to the government. Unlike the Engineering, Procurement and Construction model, where maintenance responsibility is limited, the BOT structure ensures long-term accountability, typically extending up to 10 to 15 years or more.

Officials indicated that nearly seven highway projects worth around Rs 60,000 crore are already lined up under the BOT framework. The approach is expected to attract sizeable private investment while reducing long-term fiscal pressure on the exchequer. By placing maintenance risk on developers and investors, the government aims to ensure better construction standards and sustained road quality.

The policy shift also aligns with the Centre’s broader asset monetisation strategy, which seeks to unlock value from operational infrastructure and recycle capital into new projects. Highways remain a key focus area within the national monetisation pipeline, alongside logistics parks and ropeways.

At the same time, the Ministry of Road Transport and Highways is revising concession agreements to minimise disputes, streamline bidding processes and enhance transparency. Land acquisition and inter-departmental clearances, often cited as key bottlenecks, are also being addressed to accelerate project execution without compromising quality.

With infrastructure spending continuing at a record pace, the renewed thrust on the Build-Operate-Transfer model reflects a strategic recalibration. The focus is shifting from merely expanding highway length to building resilient, high-quality corridors that support long-term economic growth.