Nod for Hybrid Annuity Model for highway projects

New Delhi

The HAM is a mix of engineering, procurement and construction (EPC) and build-operate-transfer (BOT) formats, with the government and the private companies sharing the total project cost in the ratio of 40:60 respectively.

“The cabinet committee on Economic Affairs, chaired by Prime Minister  Narendra Modi, has given its approval for the Hybrid Annuity Model as one of the modes of delivery for implementing the Highway Projects. Adopting such a model for projects not found viable on BOT (Toll) mode shall be more effective in terms of maximising the quantum of kilometres implemented within the available financial resources of the government,” an official statement said.

The main object of the approval is to revive highway projects in the country by making one more mode of delivery of highway projects, the statement. It further said by adopting the Model as the mode of delivery, all major stakeholders in the PPP arrangement _ the authority, lender and the developer, concessionaire would have an increased comfort level resulting in revival of the sector through renewed interest of private developers. It will facilitate uplifting the socio-economic condition of the entire nation due to increased connectivity across the length and breadth of the country leading to enhanced economic activity.