3118 billion under the Eleventh Plan versus the INR 1448 billion spent under the TenthPlan.Further Private participation is crucial to meet the investment goal in infrastructure because there are limitations to budgetary support from the Indian government. For this purpose a proper framework is being put in place to enhance participation of the privatesector in various segments of infrastructure. So we can expect a strong private participation in roads through BOT projects. BOT stands for "Built, Operate andTransfer". BOT model uses private investment to undertake the infrastructuredevelopment that has historically been the preserve for the public sector. In a BOT project a private company is given a concession to built and operate a facility that wouldnormally be built and operated by the government. The facility might be a power plant,airport, toll road, etc. But we are here concerned with the financial attractiveness of tollroad projects to the Private Infrastructure developers. For this purpose I have provided aninsight to the various opportunities available like the tax benefits and various aids andgrants announced by the Government. I have also tried to bring to notice all the major risks involved and steps to mitigate such risks.Further I have done a comprehensive financial analysis in which I have made certainassumptions and calculated the BOT toll road project’s IRR and DSCR, which provesthe fact that such projects are, indeed, not only financially lucrative but also has adazzling future.
CERTIFICATE OF ORIGINALITY
The thesis “Financial Viability Analysis of the Road Sector Projects in India” submitted by for his MBA program has been pursued and completed under my guidance. The samehas been upto my expectation and so I, hereby, approve the same.ii