New Delhi, Feb. 16 -- Private equity firms, pension funds and sovereign wealth funds may soon get to bid for greenfield highway projects under the so-called build-operate-transfer (BOT) model, setting the stage for the entry of cash-rich investors right from a project's start. The effort to accelerate India's ambitious infrastructure plans marks a departure from the current regime, where these investors can enter only once the projects are up and running.

The Centre is close to finalizing a new model concession agreement (MCA) to govern the BOT model, which will open highway bidding to private equity firms and fund houses, two road ministry officials familiar with the plan said. The new MCA is likely to be out by the end of the month, as...