Govt may halve upfront pay to highway builders

NEW DELHI: The government is considering to cut the upfront payment to highway builders by half during the construction period by modifying the Hybrid Annuity Model (HAM), which has become popular in recent years.

Against the current norm of paying 40% of the project cost during construction period and the rest amount in equal installments during the remaining period of contract, the National Highways Authority of India (NHAI) is working on the proposal to pay only 20% of the cost during the construction phase.

Sources said the matter has been taken up with the road transport ministry. “We will go ahead with the plan after getting the necessary go ahead,” a government official said.