National highway projects worth Rs 10,000 crore have been approved in the ongoing financial year under the hybrid annuity model (HAM), the Parliament was informed today.
The objective is to maximise the quantum of implemented projects within the available financial resources of the government and to revive private sector participation in the sector, Road Transport and Highways Minister Nitin Gadkari said in a reply to Lok Sabha.
"National highway projects worth approximately Rs 10,000 crore have been approved in this financial year (till October 31, 2019) under the hybrid annuity model," he said.
Toll fee collection from the highway projects developed under the hybrid annuity model is the responsibility of the government/authority.
The government, he said, has approved the hybrid annuity model for building national highways to speed up construction of roads in the country by renewing interest of private developers in highway projects.
While 40 per cent of the project cost is to be provided by the government as construction support during the construction period under the hybrid annuity model, the balance 60 per cent is to be given as annuity payments over the operation period, along with interest thereon to the concessionaire.
"In order to tap the benefit of long term funds like pension fund, insurance fund, wealth fund etc into road construction sector, Ministry of Road Transport and Highways (MoRTH) has introduced models like HAM and TOT (Toll-Operate-Transfer)," Gadkari said.