Hybrid Annuity model for implementing highway projects

Hybrid Annuity model for implementing highway projects

Question: The Cabinet Committee on Economic Affairs has given its approval for the Hybrid Annuity Model as one of the modes of delivery for implementing which of the following project?

(a) Highway Projects
(b) Skills Development Project
(c) Agricultural Development Project
(d) Solar energy project

Ans (a)

Related facts:

  • On 27 January 2 016, The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the Hybrid Annuity Model as one of the modes of delivery for implementing the Highway Projects.
  • Adopting such a model for projects not found viable on BOT (Build, Operate and Transfer) (Toll) mode shall be more effective in terms of maximizing the quantum of kilometers implemented within the available financial resources of the Government.
  • The main object of the approval is to revive highway projects in the country by making one more mode of delivery of highway projects.
  • By adopting the Model as the mode of delivery, all major stakeholders in the PPP arrangement – the Authority, lender and the developer, concessionaire would have an increased comfort level.
  • This will result in revival of the sector through renewed interest of private developers/investors in highway projects and this will bring relief thereby to citizens / travelers in the area of a respective project.

Reference:

http://pib.nic.in/newsite/pmreleases.aspx?mincode=69

http://pib.nic.in/newsite/PrintRelease.aspx?relid=135821

http://www.thehindu.com/news/national/govt-approves-hybrid-annuity-model-for-highway-projects/article8158108.ece