FINANCIAL VIABILITY OF BOT ROAD PROJECTS IN INDIA

Objectives: To study the importance of Public Private Partnership in Indian infrastructure. To study the relevance of BOT model in the Indian Infrastructure sector. To identify the various parameters required for the financial analysis of a BOT project. To study the financial evaluation of a BOT Case study utilizing Net present value (NPV), Internal Rate of Return (IRR), Payback, Discounted Payback and Modified Internal rate of return (MIRR) methods. Methods: India ventured into building and maintenance of road infrastructure to meet its economic needs as inadequate transport infrastructure would be an impediment to the growth of a developing country. However, large scale infrastructure ventures like road projects increased the financial stress on government bodies. Findings: A wide gap existed between the investments required and the available financial sources for road infrastructure. With the perspective of exploiting private funding agencies for implementation of public projects, Build operate transport (BOT) model burgeoned. BOT structure includes the stipend of a concession by a legitimately enabled legislative power (the grantor) to an extraordinary reason organization (the concessionaire). Novelty: A BOT street project has a long start up working years in misfortune because of its long bump up period for the movement level to balance out. Thusly, the recovering of the venture would for the most part take quite a while.