Road Ministry Plans to Tender BOT Projects Worth Up to Rs. 2 Lakh Crore by March 2024: Gadkari

In a strategic move to enhance efficiency and reduce traffic congestion on highways, the Ministry of Road Transport and Highways is set to bid out projects valued between Rs. 1.5 lakh crore to Rs. 2 lakh crore on the build-operate-transfer (BOT) model before the model code of conduct takes effect, announced Nitin Gadkari, the Minister of Road Transport and Highways. The projected timeline for this ambitious initiative is before the anticipated general elections in April-May 2024.

The objective behind this move is to implement a GPS-based toll collection system, allowing motorists to be charged based on the exact distance traveled on the highways. Gadkari shared these insights during the annual conference of the Highways Operators Association of India (HOAI) on Wednesday.

Addressing the audience, Gadkari emphasized the government's exploration of new technologies, specifically GPS-based toll systems, to replace traditional toll plazas across the country. He announced plans to roll out the new GPS-satellite-based toll collection system nationwide by March next year.

The Minister highlighted the positive impact of FASTags introduced in 2020-21 and 2021-22, significantly reducing the average waiting time for vehicles at toll plazas from eight minutes (in 2018-19) to a mere 47 seconds.

Discussing the shift from the engineering, procurement, and construction (EPC) model to the BOT model, Gadkari revealed that the government aims to bid out road projects valued between Rs 1.5 lakh to Rs 2 lakh crore specifically for highway projects less than 1000 km before the model code of conduct is implemented.

Looking ahead, Gadkari expressed a preference for the Infrastructure Investment Trusts (InvITs) model, particularly for highway construction projects. InvITs function as instruments similar to mutual funds, pooling money from investors to invest in assets generating cash flows over time.

Gadkari also disclosed that the Ministry of Road Transport and Highways has successfully conducted two pilot projects involving automatic number plate recognition systems (automatic number plate reader cameras). This innovation aims to enable automated toll collection without requiring vehicles to stop at toll booths, contributing to a smoother and more efficient traffic flow on highways.

ET