India will need $1.5 trillion of investment in infrastructure over the next 10 years. Of this nearly $10 billion is required in sewage treatment plants. Similarly, about $8 billion is required to be invested in ensuring regular drinking water supply.
Tag: Hybrid Annuity Model
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Country Roads, City Roads, and the Roads in between
Many of us know that the celebrated economist John Maynard Keynes famously said that (in times of slowdown) the government should pay people to dig holes in the ground and then fill them up
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Competition Picks Up in HAM
Macro developments suggest positive trends in the road sector with pickup in execution. Recent bids under the Hybrid Annuity Model (HAM) in May-June have seen participation increasing from two-four players to seven-eight players as the risk-reward equation is favourable.
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Implications on infrastructure
The amount of Rs.800 cr budgeted for ports and inland waterways appears to be below the potential of these sectors. The Union Budget 2016-17 lists infrastructure among one of the four priority areas.
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The bottom line is that roads should get done
There has been a significant mindset change in the approach of NHAI and its officers. This is the most significant improvement in the working situation that we have ushered in.
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Hybrid Annuity model for implementing highway projects approved
The Cabinet Committee on Economic Affairs, chaired by the PM Narendra Modi, has given its approval for the Hybrid Annuity Model as one of the modes of delivery for implementing the Highway Projects.
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Hit by the HAMmer
The Hybrid Annuity Model (HAM) unveiled with great fanfare earlier this year was expected to set off the next wave of award of PPP highway projects. The intent and purpose of introducing HAM, as a hybrid of EPC and BOT (annuity) formats, was noble and deserves to be lauded: to moderate risks faced by highway developers and to provide financial support during construction.
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Awarding of road projects
A new mode of delivery under public-private partnership (PPP) mode, namely Hybrid Annuity Model, is being considered for awarding road projects for implementation, Pon Radhakrishnan, Minister of State for Road Transport & Highways, said.
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protection
The road sector has gathered steam with the government´s focus on the revival of the investment cycle. Over the next six months, the government plans to award road projects worth Rs 3.5 lakh crore.