Recap Daily Points – November 2025

 

                              The Banking Tutor                                 Recap Daily Points  – November 2025

 

2239. Build-Operate-Transfer (BOT)

"BOT" stands for Build Operate Transfer, a project financing and management model where a private company finances, designs, constructs, and operates a facility for a set period, after which it transfers ownership to the public sector. This model is widely used for large-scale infrastructure projects like highways, and can also be applied to technology and service outsourcing.

 

2240. Build-Own-Operate (BOO)

A Build-Own-Operate (BOO) model is a public-private partnership where a private company is granted the right to finance, design, construct, own, and operate a project for a specific period, often recovering its investment through user fees, tolls, or sales. Unlike a Build-Own-Operate-Transfer (BOOT) model, the private party often retains ownership of the asset after the contract ends, or the government may have the option to purchase it. This model is common for large-scale infrastructure projects like power plants, water treatment facilities, and toll roads.

 

2241. International Transaction Number (ITN)

The International Transaction Number (ITN) is a unique identifier assigned by the US Census Bureau's Automated Export System (AES) to each shipment exported from the United States. It serves as proof that the shipment's export information has been accepted by the AES and is required by the U.S. Customs and Border Protection (CBP). 

 

2242. Earnings Per Share

Earnings per share (EPS) is the amount of a company’s profit allocated to each share of its common stock.

 

2243. Hybrid Annuity Model (HAM)

The Hybrid Annuity Model (HAM) is a public-private partnership (PPP) model used in India for highway construction, which combines elements of the Engineering, Procurement, and Construction (EPC) and Build-Operate-Transfer (BOT) models. Under this model, the government funds 40% of the project cost as support during construction, and the private developer receives the remaining 60% in annuity payments over the life of the project (typically 15 years). Toll collection is the responsibility of the government, and this structure helps share the risk between the government and private developers

 

2244. Toll-Operate-Transfer (TOT):

"Toll, Operate, Transfer (TOT)" is a model used by the National Highways Authority of India (NHAI) to monetize public-funded highways. Under this model, private companies (concessionaires) pay an upfront lump sum to NHAI in exchange for the right to collect and keep toll fees for a predetermined period (e.g., 30 years). The concessionaire is also responsible for the operation and maintenance of the highway during this period. 

 

2245. BOOT (Build, Own, Operate, Transfer)

BOOT is a PPP Project model in which the public-sector partner may provide limited funding or some other benefit (such as tax exempt status) but the private-sector partner assumes the risks associated with planning, constructing, operating and maintaining the project for a specified time period. During that time, the developer charges customers who use the infrastructure that's been built to realize a profit. At the end of the specified period, the private-sector partner transfers ownership to the funding organization, either freely or for an amount stipulated in the original contract. Such contracts are typically long-term and may extend to 40 or more years.

2246. BOLT (or BLOT)  (Build Own Lease & Transfer)

The BOLT model is a type of Public-Private Partnership (PPP) where a private entity designs, builds, and owns a facility, leases it to the government for a set period, and then transfers ownership to the government at the end of the lease. It is particularly suitable for social infrastructure projects like schools and hospitals because it shares risks between the public and private sectors and avoids the need for direct government financing or the private sector to bear commercial risks alone.

 

2247. BLT (Build, Lease, Transfer)

BLT is a form of procurement in which a private contractor builds (and finances) a project on behalf of a public sector partner (or client) and then leases the project back to the client for a predetermined period (referred to as the lease or concession period).

 

2248. V-BOT (Variable BOT)

A variable Build-Operate-Transfer (BOT) is a specific type of Public-Private Partnership (PPP) model for large-scale infrastructure projects. The "variable" aspect refers to a more flexible contract structure that can adjust based on a project's financial performance, instead of being fixed.

 

2249. DBFT (Design, Build, Finance, Transfer)

DBFT is a project delivery method that allows a contractor with expertise in design, construction and financing to be appointed to design, construct and arrange financial resources for the works.

 

2250. Bankruptcy

Bankruptcy is a legal process for relieving debt that the borrower cannot repay. It’s a measure of last resort that typically requires liquidating assets or entering a repayment plan.

2251. BBO (Buy-Build-Operate)

BBO is a form of asset sale that includes a rehabilitation or expansion of an existing facility. The government sells the asset to the private sector entity, which then makes the improvements necessary to operate the facility in a profitable manner.

 

2252. DBO (Design, Build, Operate)

A design build operate (DBO) contract is a project delivery model in which a single contractor is appointed to design and build a project and then to operate it for a period of time. The common form of such a contract is a public private partnership (PPP), in which a public client (e.g. government or public agency) enters into a contract with a private contractor to design, build and then operate the project, while the client finances the project and retains ownership.

This differs from a design build finance and operate (DBFO) contract in which the contractor also finances the project and leases it to the client for an agreed period (perhaps 30 years) after which the development reverts to the client.

 

2253. M3

M3 is the broadest measure of the money supply, incorporating M2, large time deposits, and less liquid assets. M3 is distinct in that it emphasizes money as a store of value with its focus on less-liquid assets, unlike M0, M1, and M2, which include more liquid financial products.

 

2254. Furlough

A furlough is a temporary layoff, an involuntary leave, or some other modification of normal working hours without pay for a specified duration. 

 

2255. DBFOM (Design Build Finance Operate Maintain) 

DBFOM is a project delivery method that allows a private sector contractor to design, build and finance a project and then to handle operations and facilities maintenance under a long-term agreement.

Operations refer to actions taken to achieve business objectives. Maintenance refers to actions taken to keep the asset in running order. Maintenance can be considered a subset of operations, since it ensures that assets retain a good appearance and operate at optimum efficiency.

 

2256. BTO (Build-Transfer-Operate)

BTO is a contract signed between a competent state agency and an investor to build an infrastructure facility. ... The Government will grant the investor the right to operate that facility for a specified duration to recover investment capital and earn profits.

 

2257. LROT (Lease Renovate Operate and Transfer)

Lease, Renovate, Operate, and Transfer (LROT) is a public-private partnership model where a private company leases an existing government facility, renovates it, operates it for a fixed period to recoup its investment, and then transfers the facility back to the government. This model is used for improving existing infrastructure, such as hydropower stations, and differs from the more common Build-Operate-Transfer (BOT) model because it starts with an existing, rather than a new, facility.

 

2258. Turnkey, a Turnkey project, or a Turnkey Operation (also spelled turn-key)

Turnkey is a type of project that is constructed so that it can be sold to any buyer as a completed product. This is contrasted with Build to Order, where the constructor builds an item to the buyer's exact specifications. 

 

2259. Gig Economy

A gig economy is characterized by temporary, contract, and freelance jobs rather than permanent positions. Gig workers enjoy flexibility but often lack job security and essential benefits.

 

2260. Management Contracts

A management contract is an agreement where a company (the owner or investor) hires a separate management company to run all or part of its operations, projects, or specific functions in exchange for a fee.

 

2261. Private Finance Initiative (PFI)

A Private Finance Initiative (PFI) is a public-private partnership (PPP) model where private companies finance, build, and manage public projects for a long-term contract (often 25-30 years).

 

2262. BDO (Build-Develop-Operate)

"Build, develop, operate" refers to a phase-based approach to a project, often seen in models like Build-Operate-Transfer (BOT), where a private entity is responsible for the entire lifecycle from construction and development to operational management before ultimately transferring the project to a public or another private entity. The "develop" phase can be further broken down into specific activities like design, planning, and construction. This model is frequently used for large infrastructure projects and is a type of public-private partnership (PPP)

 

2263. DBFOT

DBFOT stands for "Design, Build, Finance, Operate, and Transfer". It is a project delivery model, often used in public-private partnerships (PPPs) for large-scale infrastructure projects, such as highways, airports, and power plants. This model allows governments to leverage private sector capital and expertise to fund and manage public works projects.

2264. OMDA

An Operations, Management, and Development Agreement (OMDA) is a specific type of Public-Private Partnership (PPP) contract in which a government hires a private company to operate, maintain, and develop a public asset. The private company does not take ownership of the asset, and the public authority retains control. This model is commonly used for infrastructure projects, such as the privatization of Indian airports.

 

2265. Going Private

The term going private refers to a transaction or series of transactions that convert a publicly traded company into a private entity. Once a company goes private, its shareholders are no longer able to trade their shares in the open market.

 

2266. Gazelle intensity

"Gazelle intensity" refers to an aggressive, focused approach to paying off debt. It involves dramatically cutting spending and increasing income for a set period to pay off debt as quickly as possible, using every available spare dollar. This temporary, intense effort is a key part of the baby steps plan and is meant to break the debt cycle quickly, allowing for a better financial future.

 

2267.Risk Tolerance

Risk tolerance is the degree of uncertainty and financial loss that an investor is willing to take on an investment in exchange for a possible higher return.

 

2268. Government Shutdown

A government shutdown is caused by delays in the approval of the next fiscal year budget, which results in nonessential government office closures.

Sekhar Pariti

01-12-2025                                                                                +91 94406 41014