The NHAI is contemplating awarding around 2,000 km of road projects based on the HAM model in the current fiscal. It has a awards target in all the categories of 6,000 km in the current fiscal, while in the last fiscal, 834-km projects were awarded under HAM of the total awards of 2,222 km. Official sources in NHAI added that under HAM, NHAI pays 40% of the project cost upfront and remaining 60% over a period of 15 years to the developer, who therefore, needs to source funds for the 60% construction cost at the initial stage and his equity share turns out to be less than 10% in most cases. In the first half of the current fiscal, NHAI has awarded 843 km highways under EPC. In the BOT model, the developer collects tolls to recoup investments. Under the EPC model, the project cost is completely borne by the government. NHAI has invited proposals for annual pre-qualification for construction of 4/6 lane highway stretches worth about 950 km.
📅Published on:
18 November 2019
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