Centre to offer more highway projects on hybrid-annuity model next year

The hybrid-annuity model (HAM) is anticipated to be the preferred mode in executing highway projects in 2018-19 because it is expected to bring back private players in the sector, according to the Centre and the National Highways Authority of India (NHAI).

Optimism has returned after banks have regained an interest in financing such contracts.

Officials of the Ministry of Road Transport are of the view that shifting the focus from EPC (engineering, procurement, and construction) contracts, which are fully funded by the government, will lead to savings.

“The hybrid-annuity component in the award of projects would see an increase in the next fiscal,”