The package formed part of multiple highway packages valued at Rs 188,846.9 mn across Gujarat and Maharashtra for which bids were sought under the same model. Tenders for these projects drew no participation from private developers despite several deadline extensions. The 105.8 km stretch represents nearly half of the proposed 214 km Tharad–Deesa–Mehsana–Ahmedabad National High-Speed Corridor, which received Union government approval in August 2024.
The weak response is being treated as a further hurdle to efforts to revive the Built-Operate-Transfer model, which had lost favour because of risks associated with land acquisition delays, environmental clearances and uncertainty in toll revenue. Developers also registered concerns about the limited time allowed for project evaluation. Under the Built-Operate-Transfer model, private firms finance, construct and operate highways and recover investment through toll collection over a fixed concession period.
Industry observers said that unless key project risks are mitigated through changes in contract design or enhanced risk sharing, attracting private investment in large highway corridors will remain difficult. The absence of bids is likely to prompt the authority to consider alternative procurement routes and to revisit project milestones and risk allocation. The project’s future schedule and funding approach remain under review as authorities weigh options to advance the corridor.