New Delhi, Sept. 9 -- The Centre is rewriting rules for private highway developers, giving them an easier exit from troubled build-operate-transfer (BOT) projects and lenders greater protection against losses, as the government tries to revive private investment in a model weighed down by delays and disputes.

Under the revised model concession agreement (MCA), a concessionaire or private developer can trigger termination compensation during construction once a project has achieved at least 20% physical progress, according to two officials from the ministry of road transport and highways (MoRTH) aware of the development.

The framework also allows a financially stressed developer to be replaced, creating a defined exit route instead of le...