Highway and Road policy:

The following provisions have been listed with a view to attract private investment and for facilitating public-private partnership in National Highways:

• Simplified policies with transparent procurement procedures
• Model Concession Agreement (MCA) standardization
• Foreign Direct Investment (FDI) up to 100 percent is allowed in the road sector
• Viability Gap Funding up to 40 percent of project cost based on competitive bidding for each project
• Tax concessions -complete tax holiday for any 10 consecutive years out of 20 years of the concession period.
• Retention of toll by concessionaire for BOT (Toll) projects
• Duty free import of high capacity and modern road construction equipments
• Greater Equitable allocation of risk
• Better clarity in the defining of rights and obligations of the parties.
• Strong dispute resolution mechanism
• Robust Institutional and legal set up comfort to the investors
• Revenue sharing in the form of negative grant and concession fee.
• Protection of the concessionaire from the risks of additional Tollway and competing roads.