Development of highways will get huge push! Modi govt relaxes BOT/HAM norms to draw extra participation

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Financial Express - Business News, Stock Market News


Also, for both HAM and BOT projects, "the capital cost of the project should be more than 5% of the amount specified as the estimated project cost," the ministry of road transport and highways said in a notification.Also, for both HAM and BOT projects, "the capital cost of the project should be more than 5% of the amount specified as the estimated project cost," the ministry of road transport and highways said in a notification.Additionally, for each HAM and BOT tasks, “the capital value of the venture needs to be greater than 5% of the quantity specified because the estimated venture value,” the ministry of street transport and highways stated in a notification.

In a transfer that may entice extra participation within the development of highways, the federal government has relaxed technical and monetary {qualifications} for bidders of nationwide freeway tasks below hybrid annuity mode (HAM) and builds, function, switch (BOT) mode.

Underneath the modified guidelines, a bidder might be certified to bid for a HAM venture if it has a minimal web value of 15% of the estimated venture value (EPC) on the shut of the previous monetary yr. Earlier, it was 25%.

Additionally, for each HAM and BOT tasks, “the capital value of the venture needs to be greater than 5% of the quantity specified because the estimated venture value,” the ministry of street transport and highways stated in a notification. This was “greater than 10%” earlier.

It has additionally stated that no prior expertise of the bidder is required for setting up tunnels as much as 200 meters and bridges as much as 60 meters size.

The ministry has additionally widened development expertise in segments equivalent to stadium, hospitals, lodge, sensible metropolis, warehouse/silos, oil & fuel and actual property growth work as a part of the technical qualification for each HAM and BOT tasks.

Earlier, this was confined to areas like civil development of energy sector, business set ups, airports, industrial estates, logistic parks, pipelines, irrigation and water provide as a part of pre-requisite technical experience.

“The widening of the scope for technical bids and leisure in monetary capability will definitely improve competitors within the highways sector,” stated Rajeshwar Burla, vice chairman, Icra Rankings.

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