It looks like the much-hyped hybrid annuity model (HAM) adopted for road projects is running into rough weather. The delay in announcing the “appointed date” for nearly one-third of the HAM road projects has been a cause for concern. Appointed date is the date fixed after the tender is awarded from when the scheme comes into force.
To be sure, the HAM model is an improvisation on the erstwhile BOT (build-operate-transfer) format. The National Highways Authority of India (NHAI) had hoped to circumvent project delays due to the hurdles in land acquisition and environment clearances. These hurdles had sounded death knell for some of the best infrastructure firms during the early 1990s, leaving gaping holes in investors’ pockets.
