HAM model cracks Rs.43,500 cr financial closures

In an encouraging development in the road sector of the 48 road projects awarded under the hybrid annuity model (HAM) by NHAI and the Road Transport ministry till March, 42 projects with an aggregate bid project cost (BPC) of Rs.43,500 crore have achieved financial closure. Road developers said that more number of financial closures is a positive sign as it would improve the confidence among companies to bid for more projects. In the current quarter, the company is seeing more number of projects being tendered on an engineering procurement and construction (EPC) basis. Perhaps, the increasing number of financial closure for HAM projects will inspire confidence and encouraged the government to bid out more projects under this model. The company built the largest portfolio of HAM projects for about Rs.7,000 crore until it divested this entire portfolio along with other road assets in August for Rs.1,600 crore, said director, strategy and planning, Dilip Buildcon, Rohan Suryavanshi, adding that the company plans to continue to bid for more HAM projects at a similar pace.