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The road not taken: BOT projects are on the block but deals few and far

Several BOT road developers are looking to hawk their assets but likely competition from proposed greenfield projects and market overcrowding with HAM and TOT assets have made potential buyers stay away.
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priyanka
22 Feb 2019 5 Mins Read 0 comment
In 2004, Maharashtra State Road Development Authority sold the toll-collection rights for the Mumbai-Pune Expressway, India’s first high-speed, access-controlled toll road, to Pune-based IRB Infrastructure. The deal was for 15 years at an upfront payment of INR918 crore. The investment has paid off for IRB — in the past four fiscal years alone, from FY15-FY18, IRB Infrastructure earned toll revenue
the traffic projections pan out as expected, a HAM project can give a return of 12% irrespective of the traffic performance, says Rajeshwar Burla, assistant vice-president at Icra. But some investors argue that, just like the Mumbai-Pune expressway, toll roads have revenue potential till there isn’t a competing road project. ( Graphics by Mohammad Arshad and Ankita Mehrotra)
In 2004, Maharashtra State Road Development Authority sold the toll-collection rights for the Mumbai-Pune Expressway, India’s first high-speed, access-controlled toll road, to Pune-based IRB Infrastructure. The deal was for 15 years at an upfront payment of INR918 crore. The investment has paid off for IRB — in the past four fiscal years alone, from FY15-FY18, IRB Infrastructure earned toll revenue the traffic projections pan out as expected, a HAM project can give a return of 12% irrespective of the traffic performance, says Rajeshwar Burla, assistant vice-president at Icra. But some investors argue that, just like the Mumbai-Pune expressway, toll roads have revenue potential till there isn’t a competing road project. ( Graphics by Mohammad Arshad and Ankita Mehrotra)

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