These projects will be executed on the hybrid annuity mode (HAM) under the economic corridor program. This mode of execution involves a combination of government and private sector funding, where the government bears 40% of the project cost during the construction phase, while the remaining 60% is paid in installments over a 15-year period. The hybrid annuity mode is intended to encourage private sector participation in the development of infrastructure projects and ensure timely completion.
The Khammam-Vijayawada greenfield highway is an important transportation route that connects several major cities and towns in the region, and the construction of the four-lane access-controlled highway is expected to significantly enhance connectivity and boost trade and commerce in the area.
