Govt. has kicked off efforts to woo Malaysian contractors, who have been among the earliest investors in the roads sector in India.
Recently, Malaysian contractors have expressed interest in developing the Delhi-Meerut Expressway (DME), the first project to be bid under HAM model.
- The newly conceived Hybrid Annuity Model (HAM) is designed to make investments in road projects more attractive for private player.
- In the new model, govt. takes all the risk including the traffic.
- As the model assures developers getting back their investment, it is bound to attract bids from private player.
- The HAM model was conceived in the last financial year to bring back private participation in highway projects.
- The govt. would provide 40% of the project cost to the developer to start work.
- The remaining investments have to be borne by developer.
- NHAI will collect toll and refund the amount in installments over a period of 15-20 years.