Lok Sabha Question No. 76 (STARRED), answered on 2019-11-21
Subject: Hybrid Annuity Model for National Highways
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Kotha Prabhakar  Reddy

be pleased to state:

- (a)  whether  the  Government  has  approved  the  Hybrid  Annuity  Model  (HAM)  for  building National Highways (NHs) worth more than Rs. 36,000 crore this fiscal year and if so, the details thereof;
- (b) whether this move is likely to speed up the construction of NHs in the country by renewing the interest of private developers in highway projects and if so, the details thereof;
- (c)  whether  the  Government  will  invest  40  per  cent  of  the  construction  cost  for  building highways in five instalments and the balance will come from the private developer under the PPP model and if so, the details thereof;
- (d) whether the private developer will recover his investment from the Government by receiving annuity payments over a period of 15 years and the highway toll tax will be collected by the Government under this model, if so, the details thereof; and
- (e)  whether this model will bring in long-term infrastructure funds like pension funds into the sector and double the speed of highway construction in the country due to utilisation of resources and expertise of the private sector and if so, the details thereof?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS

(SHRI NITIN JAIRAM GADKARI)

(a) to (e) A STATEMENT is laid on the table of the House.

## GOVERNMENT OF INDIA

## MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA STARRED QUESTION NO. 76

ANSWERED ON 21 ST  NOVEMBER, 2019

## HYBRID ANNUITY MODEL FOR NATIONAL HIGHWAYS

*76.    SHRI KOTHA PRABHAKAR REDDY:

## Will the Minister of ROAD TRANSPORT AND HIGHWAYS सड़क परिवहन औि िाजमार्ग मंत्री

STATEMENT  REFFERED  TO  IN  REPLY  TO  PART  (A)  TO  (E)  OF  LOK  SABHA STARRED QUESTION NO. 76 ANSWERED ON 21 ST  NOVEMBER, 2019 ASKED BY SHRI  KOTHA  PRABHAKAR  REDDY  REGARDING  'HYBRID  ANNUITY  MODEL FOR NATIONAL HIGHWAYS'

……………………………………………………………………………………………………… (a)  to  (d)  Government  has  approved  the  hybrid  annuity  model  (HAM)  for  building  National Highways (NH) to speed up the  construction  of  roads  in  the  country  by  renewing  interest  of private  developers  in  highway  projects.  40%  the  Project  Cost  is  to  be  provided  by  the Government  as  Construction  Support  during  the  construction  period  and  the  balance  60%  as annuity payments over the operations period along with interest thereon to the concessionaire. National Highway projects worth approximately Rs.10,000 crore have been approved in this financial year (till 31.10.2019) under the hybrid annuity mode. The objective is to maximize the quantum of implemented projects within the available financial resources of the Government and  to  revive  private  sector  participation  in  the  sector.  Toll  fee  collection  from  the  highways projects developed under the hybrid annuity model is the responsibility of the Government/Authority. In order to tap the benefit of long term funds like pension fund, insurance fund, wealth

(e) fund etc into road construction sector, MoRTH has introduced models like HAM and TOT (TollOperate-Transfer).

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