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Thursday, January 28, 2016

Cabinet okays hybrid annuity model for implementing highway projects

The government of India 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 maximizing the quantum of kilometers implemented within the available financial resources of the government,” according to a Cabinet statement. The main object of the approval is to revive highway projects in the country by making one more mode of delivery of highway projects. 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 in highway projects and this will bring relief thereby to travelers in the area of a respective project. 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, it added.