PWD launching roads worth Rs.6,740 cr in Vidarbha

The state public works department (PWD) has planned road worth Rs.6,740 crore in 11 districts of Vidarbha under the new hybrid annuity model. Under the hybrid annuity model (HAM), major advantages will be that contractors will be responsible for quality of works for 10 years, as against the existing defect liability period of three years. Adopted from the NHAI, the hybrid annuity model is expected to help the PWD execute road works without imposing a toll tax, and also stagger payments to contractors over a longer period, instead of a bulk payment at the end of construction. PWD plans to execute the road works in packages, clubbing two or more roads. With a total number of 150 packages, of which 50 in Vidarbha have been taken up for tendering process and that 44 packages will be executed in Vidarbha covering road network of 2,456.50 km, said official sources, that investments of Rs.3,425 crore and Rs.3,314 crore is being made in Nagpur and Amravati divisions, respectively.