NHAI is executing nearly 205 highway projects
The Government of India is increasing the amount of money spent on infrastructure development with nearly 205 projects being executed by the National Highways Authority of India (NHAI). Of these, there are 18 projects which cover around 800km. The projects will be executed on a hybrid annuity model (HAM). Under this model, the government will initially contribute 40 per cent of the cost of the highway project. This amount will be paid in five equal installments. The remaining amount should be collected by a private developer, through loans or equity. Once the project is completed, the government will pay the remaining 60 per cent, as a variable annuity based on the value of assets created by the developer. Additionally, the developer doesn’t have the right to collect tolls and the revenue collection will be carried out by the NHAI.