BOT means Build, Operate and Transfer. 

It is a contractual arrangement where the contractor undertakes the construction, including financing, of a given infrastructure facility, and the operation and maintenance of it.


A private participants agrees with a government to invest in a public infrastructure project. They have to raise the fund to construct project.

Operate : 

The project developers then own, maintains and manages the facility over a fixed term during which it is allowed to charge facility users appropriate tolls, fees, rentals which are sufficinet to enable the contractor to recover its operating and maintenance expenses and its investment in Project Plus a reasonable rate of return.

Transfer : 

After completing the concession period, project developers transfer ownership and operation of the facility to government. of highways at an estimated cost of

Currently, the government of India is executing a massive HDP as NHDP phases I to VII in the 11th Plan period covering approximately 13,146 km Rs. 54,000 crores.

Some of the BOT Projects in India are :

Mumbai – Pune Expressway

Delhi – Noida Bridge 

Vadodara – Halol Road

Banglore – Mysore Expressway

Ahmedabad – Vadodara Expressway

Four-laning of the Ambala-Kaithal section of NH-65

Hapur-Moradabad highway

Six-laning of Panagarh-Palsit in West Bengal 

Six-laning of Palsit-Dankuni in West Bengal

Advantages of BOT : 

1) Good quality of roads are available.

2) Road is well maintained during toll period.

3) Construction of road is carried out rapidly.

4) Due to infrastructure development, economic growth of country will increase.  

5) Faster and comfortable movement is possible.

Disadvantages of BOT :

1) Road users have to pay toll tax for travel on BOT road. 

2) Petrol pump and restaurants are situated at definite and limited locations.

3) Parking is restricted on expressways built on BOT basis.

4) Private companies may not maintain the roads as per criteria in future.

5) Construction cost is higher.

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