Revival of PPPs in highways sparks fresh private infra investments: Moody's

Introduction of hybrid annuity model in 2016, as a variation of PPPs, does the trick, rebalancing certain project risks between public and private sectors

The Union government’s thrust on awarding highway projects based on the hybrid-annuity model (HAM) has rekindled private developers' interest in the sector. According to a report by rating agency Moody’s, the introduction of HAM has led to the new investments in roads and highways.

Moody's defines a PPP as a long-term contractual agreement between a public sector entity and a private developer to design, build, finance, operate and/or maintain an infrastructure asset for a specific period.

"Private investment in highway projects had been declining in recent years, amid issues such as slow project approvals and cost overruns, but the Indian