The standing finance committee (SFC) has cleared 16 highway projects worth Rs 7,456.88 crore to construct 622 km of roads in 11 states. The projects are situated in states of Maharashtra, Odisha, West Bengal, Andhra Pradesh, Gujarat, Chhattisgarh, Haryana, Uttarakhand, Arunachal Pradesh, Assam and Sikkim.
Of the approved 16 projects, two projects will be built on Hybrid Annuity Model (HAM), 13 on Engineering, Procurement and Construction (EPC) Model and remaining one on Build Operate and Transfer (BOT) Annuity Model. Road Transport and Highways Secretary Sanjay Mitra has stated that projects would be bid out shortly, while work on them would start after acquisition of 90 per cent land.
Mitra further said that two of the projects pertained to Char Dham Yatra connectivity in Uttarakhand on EPC mode. These include Rs 248 crore and Rs 200 crore projects for geometric improvement and widening of stretches on National Highway (NH) 58. The two projects to be built on hybrid annuity mode (HBA) include Rs 905 crore and Rs 1,338 crore worth of projects in Maharashtra for upgradation of NH 66 stretches under National Highways Development Project (NHDP) phase IV. The BOT project pertained to four laning of Haryana/Punjab border Jind section of NH 71 design, BOT mode.
In HAM model the government will contribute 40% of the project cost in the first five years through annual payments (annuity). The remaining payment will be made on the basis of the assets created and the performance of the developer, in EPC model the cost is completely borne by the government. Government invites bids for engineering knowledge from the private players, while in BOT model a road developer constructs the road and he is allowed to recover his investment through toll collection.
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