Rs 6,000 cr worth highway projects get approval

Highway projects worth about Rs 6,000 crore, including four projects on hybrid annuity model, have been approved for construction by the Expenditure Finance Committee on Friday.

Expenditure Finance Committee (EFC) headed by Road Transport and Highways Secretary Sanjay Mitra has given its approval to construction of highways totaling a length of over 409 km in the states of Maharashtra, Andhra Pradesh, Telangana, Sikkim and Assam, an official statement said.

The committee also recommended 4-laning of Chikhali-Tarsod, Waranga-Mahagaon, Mahagaon-Yavatmal and Yavatmal-Wardha highway projects in Maharashtra on hybrid annuity basis.

Under the hybrid annuity basis, the central government invests 40 per cent of the total cost of the highway and the remaining investment is done by the project developer. The projects in Andhra Pradesh, Telangana, Sikkim and Assam would be built on engineering, procurement and construction basis.

Hybrid annuity model for highway construction was approved by the Cabinet Committee on Econnomic Affairs in January this year. Since then around 21 highways projects worth around Rs 15,000 crore have been bid out under the hybrid annuity model.

The government is of the view that by adopting the hybrid annuity model as the mode of delivery, all major stakeholders in the public-private-partnership arrangement – National Highways Authority of India, lender and the developer would have an increased comfort level resulting in revival of the sector through renewed interest of private developers.