MoRTH Paves New Path: Revamped BOT Agreement Coming Soon

The Ministry of Road Transport and Highways will notify a revamped model concession agreement (MCA) for build-operate-transfer (BOT) toll road projects within a month, announced V Umashankar, Secretary, Ministry of Road Transport and Highways.

The updated MCA aims to reduce the traffic risk faced by private investors and make project execution more predictable. Key changes include eliminating the concept of "competing roads"—alternative routes connecting the same endpoints—which often lead to disputes.

The revamped MCA will introduce a traffic-linked buy-out principle. If traffic falls below a set threshold, a compensation or extension mechanism will activate automatically. Conversely, if traffic exceeds the target, the government can buy out the project to allow expansion. These reforms aim to ease financing, ensure quality construction, and reduce long-term project disputes.

News by Rahul Yelligetti.