Companies implementing highway development projects on annuity basis may not be allowed more than 18% profit on their investments as per a proposal under consideration of the ministry of shipping, road transport and highways. “The government is considering to cap return on equity earned by road developers for annuity projects to prevent cartels from making abnormal profits from government-funded projects,” an official in the government said requesting anonymity. Join discussion...

Pre-selection likely to save 18 months. Under a new policy, all road highway projects are to be earmarked from the beginning to one of three processes of bidding, on the basis of its financial viability. This pre-selection is estimated to save up to 18 months of time. Join discussion...

Looking to provide funds worth Rs 40,000 crore for infrastructure projects, India Infrastructure Finance Company Ltd (IIFCL) chairman S S Kohli has asked the government to make sweeping changes in the manner in which the award process for road projects is handled. Join discussion...

The National Highways Authority of India (NHAI) has invited comments from various stakeholders on a pure ‘annuity’ and ‘hybrid’ model to implement highway projects on a build-operate-transfer (BOT) basis. The ‘hybrid’ model is broadly an indirect way for the NHAI to offer the developers a higher level of viability gap funding (VGF) in the existing BOT (toll) model for four-laning of highways. Join discussion...

It is hoped that the Ministry of Road Transport and Highways will be one of the high performers in this government and it’s widely believed that the Prime Minister deliberately chose Kamal Nath to head this ministry to give it the impetus and the push that it badly needs. Join discussion...

Video. NHAI wants to change the projects that are not viable inder the BOT toll model to the BOT annuity model. Join discussion...

Indian Railways sector offers an investment opportunity of a whopping Rs 2.7 lakh crore over the next five to eight years, a report says. "Opportunities in the Railway sector are close to Rs 2.7 trillion over the next five to eight years, of which the Rs 800-900 billion will be awarded in the next two years," global financial services provider BNP Paribas said in a report. Join discussion...

According to a senior NHAI official, the authority has decided to shift to the annuity model (a variant of the BoT model) to develop the 262-km stretch in Jammu and Kashmir, which is part of the North-South corridor and 31 km distance in Assam. Join discussion...

Impending action against Maytas Infra Private Limited, headed by the sons of former Satyam chief B. Ramalinga Raju charged with India’s largest corporate fraud, has stalled the finalisation of tenders for the NH-33 revamp project. Join discussion...

Approval to the upgradation of 5,000 km under National Highway Development Project (NHDP) Phase IV-A, the National Highways Fee (Determination of Rates and Collection) Rules, 2008, modifications and additions to Phase ‘A’ of Special Accelerated Road Development Programme in North East (SARDP-NE), Join discussion...