New Delhi: The Centre plans to mandate awarding new highway projects under the build-operate-transfer (BoT) model if the traffic data, generated through the electronic toll collection system FASTag, shows that private developers can earn at least 15% annual returns from toll collections, two people aware of the matter said.

Less remunerative projects, such as highway contracts showing less than 15% annual returns, will be awarded under hybrid annuity model (HAM) or engineering, procurement construction (EPC) route, where the government bears full or partial construction risk and funding. By contrast, under the BoT model, the private builder develops the road, operates it, and recovers the cost through tolls. Also Read | Bonanza for investors as new road builders may get to toll old o

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