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

A 19th-century pilgrim’s progress

The Travels of a Sadhu in the Himalayas By Jaladhar Sen (Translated by Somdatta Mandal) Speaking Tiger Books, 259 pages, ₹499.00  

India faces critical shortage of skin donors amid rising burn cases

India reports nearly 70 lakh burn injury cases every year, resulting in approximately 1.4 lakh deaths annually. Experts estimate that up to 50% of these lives could be saved with adequate access to skin donations.   A significant concern is that around 70% of burn victims fall wi

Not just politics, let`s discuss policies too

Why public policy matters Most days, India`s loudest debates stop at the ballot box. We can name every major leader and recall every campaign slogan. Still, far fewer of us can explain why a widow`s pension is delayed or how a government school`s budget is actually approved. That

When algorithms decide and children die

The images have not left me, of dead and wounded children being carried in the arms of the medics and relatives to the ambulances and hospitals. On February 28, at the start of Operation Epic Fury, cruise missiles struck the Shajareh Tayyebeh school – officially named a girls’ school, in Minab,

The economics of representation: Why women in power matter

India’s democracy has grown in scale, but not quite in balance. Women today are active participants in elections, influencing outcomes in ways that were not as visible earlier. Yet their presence in legislative institutions continues to lag behind. The Nari Shakti Vandan Adhiniyam was meant to addres

India will be powerful, not aggressive: Bhaiyyaji

India is poised to emerge as a global power but will remain rooted in its civilisational ethos of non-aggression and harmony, former RSS General Secretary Suresh `Bhaiyyaji` Joshi has said.   He was speaking at the launch of “Rashtrabhav,” a book by Ravindra Sathe


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter