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Assured Returns Drive HAM, Uncertainty Pushes BOT Back.

NHAI Bets Big on HAM as BOT Model Shrinks to the Sidelines.                                                                                                                                                                               

The National Highways Authority of India (NHAI) is increasingly shifting towards the Hybrid Annuity Model (HAM), with ₹1.15 lakh crore worth of projects planned under the model this fiscal. Of 52 projects, 29 worth ₹76,150 crore are set for HAM awards, while only four projects worth ₹6,542 crore fall under the struggling Build-Operate-Transfer (BOT) model. HAM’s risk-sharing structure—40% upfront payment and no traffic risk for developers—has revived private participation after BOT failures linked to land delays and toll uncertainties. While the revamped BOT concession agreement aims to offer better traffic-linked compensation and reduced disputes, experts say BOT will remain limited to high-traffic brownfield stretches. Persistent land acquisition delays continue to hamper progress, with major projects in Maharashtra and Telangana facing significant gaps. Experts emphasise stronger financing tools, accurate feasibility studies, and asset monetisation via InvITs to ensure long-term infrastructure growth.