New hybrid mode for highway projects to provide funds to developers

Cabinet clears new model to revive public-private-partnership

GN Bureau | January 27, 2016



In a bid to revive public-private-partnership (PPP) mode and attract more investments in roads projects the government today approved hybrid annuity model. The new mode will fast-track highway projects considerably.

"The cabinet committee on economic affairs, chaired by the prime minister Narendra Modi, has given its approval for the hybrid annuity model as one of the modes of delivery for implementing the highway projects," said a statement from the ministry of road transport and highways.

Under this model, the government will provide 40 per cent of the project cost to the developer to start work while the remaining investment has to be made by the developer.

The main objective of the approval is to revive highway projects in the country by making one more mode of delivery of highway projects.

It said by adopting the model, all major stakeholders in the PPP arrangement - the Authority, lender and the developer, concessionaire would have an increased comfort level resulting in revival of the sector through renewed interest of private developers/investors in highway projects and this will bring relief thereby to citizens/travelers in the area of a respective project," the government said.

"Adopting such a model for projects not found viable on BOT (Toll) mode, shall be more effective in terms of maximising the quantum of kilometers implemented within the available financial resources of the government," the statement said.

An important feature of the hybrid annuity model for highways development is the rational approach adopted for allocation of risks between the PPP partners - the government and the private partner i.e. the developer/investor.

While the private partner continues to bear the construction and maintenance risks as in BOT (Toll) projects, it is required only to partly bear financing risk, it said.

"Further, the developer is insulated from revenue/traffic risk and the inflation risk, which are not within its control," the statement said.

Cyber security pacts
The cabinet also approved the Memorandum of Understandings (MoUs)signed between Indian Computer Emergency Response Team (CERT-In) with its counterparts in Malaysia, Singapore and Japan. The MoUs will promote closer cooperation for exchange of knowledge and experience in detection, resolution and prevention of security related incidents between India and respective country.

The  MoU between CERT-In and CyberSecurity, Malaysia for Cooperation in the area of cyber security was signed on November, 23, 2015 in Kuala Lumpur during the prime minister’s visit to Malaysia.

The MoU between CERT-In and Singapore Computer Emergency Response Team (SingCERTwas also signed in November.

The MoU between CERT-In and Japan Computer Emergency Response Team Coordination Center (JPCERT/CC) was signed in December, 2015.

17 reserve battalions by J&K and LWE states
The cabinet also took a decision to the raising of 17 India Reserve Battalions (IR Bns) by Jammu & Kashmir and Left Wing Extremism (LWE) affected states. It includes five in the state of J&K, four in Chhattisgarh, three in Jharkhand and Odisha and two in Maharashtra.

They will help in recruiting local youths. In this direction, the states will relax the age and educational criteria, if required. In J&K, 60% of the vacancies will be filled from the border districts. For LWE states, 75% of the vacancies of constables will be filled up from 27 core districts.

Comments

 

Other News

By 2022, 37% of workforce would be employed in new job roles: Report

 In the organized manufacturing and service sector, employment is expected to increase from the current 38 million to 46-48 million by 2022, a new study has found.  All the new forms of employment are expected to add a further 20% - 25% to the workforce of the current defined “or

Govt withdraws December 31 deadline to link Aadhaar with bank accounts

A day before a Supreme Court bench takes up petitions opposing mandatory Aadhaar linkage with several government services, the government has withdrawn its December 31 deadline to link Aadhaar with bank ac

State ownership has been blatantly unsatisfactory: Oxford professor

A wide swathe of economic activities was nationalised in India after independence, and especially during Indira Gandhi’s prime ministership, for predominantly political reasons. But state ownership was also justified as a way to correct market failures, increase investible surpluses, and pursue wider

Scientists must use common man’s language: Mashelkar

Calling for improved communication in the field of science and technology, eminent scientist and chairman, National Innovation Foundation, Dr Raghunath Mashelkar has said that it is important to advance knowledge and people need to know how that knowledge is for their own good. “Public awaren

Did the Rajasthan health department do the right thing by sending data on Muslim staff to centre?

Did the Rajasthan health department do the right thing by sending data on Muslim staff to centre?

80 percent abortion in India through medicines: Lancet

 Three in four abortions in India are through drugs from chemists and informal vendors rather than from health facilities, said a report in The Lancet. An estimated 15.6 million abortions were performed in the country in 2015, reports The Lancet in its latest released paper on ‘Inciden



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter