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A passage on Infrastructure and PPP
Introduced in January 2016 to revive investments in road infrastructure projects, ____ has seen good initial success. It is a mix of the EPC (engineering, procurement, and construction) and BOT (build, operate, transfer) models. Under the EPC model, NHAI pays private players to lay roads. The private player has no role in the road’s ownership, toll collection or maintenance (it is taken care of by the government). Under the BOT model though, private players have an active role — they build, operate, and maintain the road for a specified number of years — say 10-15 years — before transferring the asset back to the government.
Which model is described in the passage? (2 marks)
BOT
BOOT
DBFO
HAM
NONE OF THE ABOVE
- The passage describes a model introduced in 2016 to boost road infrastructure investment.
- It is a hybrid model combining elements of EPC and BOT.
- Under EPC, NHAI pays private players to construct roads, while the government handles ownership and maintenance.
- Under BOT, private players build, operate, and maintain the road for 10-15 years before handing it back to the government.
- Option 4: HAM (Hybrid Annuity Model) combines EPC and BOT, fitting the description in the passage.
- Option 1: BOT involves private players in building and maintaining roads actively.
- Option 2: BOOT (Build, Own, Operate, Transfer) isn't mentioned.
- Option 3: DBFO (Design, Build, Finance, Operate) also isn't referenced.
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