Developers should bid prudently for BOT projects: Transport secretary

Transport secretary Giridhar Aramane said the government is trying to make the BOT (build own transfer) model of private investment in road projects financially viable, but it would also require bidders to be prudent and not bid too low.

Under BOT, the developer arranges the funds for the project, collects toll from it for the agreed concession period, and then transfers the asset to the government. While there has been a revival in interest in the BOT model for roads, the government is careful to avoid the aggressive bidding that had earlier caused severe stress.