The project was included among multiple highway packages totalling Rs188,846.9 mn across Gujarat and Maharashtra that were put out for tender under the Built-Operate-Transfer (BOT) toll model. Tender documents received no participation from private developers despite deadlines being extended on several occasions. Officials overseeing the procurement recorded a complete absence of bids for the BOT packages.
The lack of response is being treated as a setback to efforts to revive the BOT toll model which had earlier fallen out of favour because of risks associated with land acquisition delays, environmental clearances and uncertainty in toll revenue. Developers communicated concerns over the limited time allowed for project evaluation and the scale of upfront investment required. The 105.8-km package represents nearly half of the proposed 214-km National High-Speed Corridor between Tharad and Ahmedabad.
Under the BOT arrangement private companies finance, build and operate highways and recover their investment through toll collection for a fixed concession period. Industry experts advised that unless project risks are reduced and procurement terms are adjusted, attracting private investment to large infrastructure projects, including key highway corridors, may remain difficult. Stakeholders suggested longer evaluation windows and clearer timelines for land acquisition and clearances, and they indicated that enhanced contractual risk sharing would be necessary to improve project bankability. NHAI may need to consider alternative procurement models and stronger risk mitigation to secure developer participation.