Ministry of Railways has issued Model Concession Agreement for Build, Operate and Transfer (BOT) model. Under this model, project will be bid out through competitive bidding to the private concessionaire who will Design, Build, Finance, Construct and maintain the project. Indian Railways will pay user charges to the concessionaire equal to 50 per cent of the apportioned revenue. The normal concession period will be for 25 years.
A minimum of eighty percent of the projected revenue has been guaranteed under this model. Model Concession Agreement provides for escalation of base tariff linked with Wholesale Price Index (WPI) during the concession period, to take care of the inflationary risk. This information was given by the Minister of State for Railways Shri Manoj Sinha in written reply to a question in Rajya Sabha today.
A minimum of eighty percent of the projected revenue has been guaranteed under this model. Model Concession Agreement provides for escalation of base tariff linked with Wholesale Price Index (WPI) during the concession period, to take care of the inflationary risk. This information was given by the Minister of State for Railways Shri Manoj Sinha in written reply to a question in Rajya Sabha today.
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