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Parliament


Govt approves hybrid annuity model for building NHs

Govt approves hybrid annuity model for building NHs

New Delhi, Nov 21(UNI) Government has approved the hybrid annuity model for building
National Highways to speed up the construction of roads in the country by renewing
interest of private developers in highway projects.
Union Minister for Road Transport and Highways Nitin Gadkari in a written reply in Lok
Sabha said 40 per cent the Project Cost is to be provided by the Government as
Construction Support during the construction period and the balance 60 per cent as annuity
payments over the operations period along with interest thereon to the concessionaire.
National Highway projects worth approximately Rs 10,000 crore have been approved in this
financial year (till October 31) under the hybrid annuity mode.
The objective is to maximize the quantum of implemented projects within the available
financial resources of the Government and to revive private sector participation in the
sector. Toll fee collection from the highways projects developed under the hybrid annuity
model is the responsibility of the Government/Authority.
In order to tap the benefit of long term funds like pension fund, insurance fund, wealth
fund etc into road construction sector, MoRTH has introduced models like HAM and TOT
(Toll-Operate-Transfer).

UNI AE ADG 1758

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