Highway construction to get on fast track! HAM projects get new lease of life

The introduction of investor-friendly changes in the model concession agreement (MCA) for highway building under the hybrid annuity model (HAM) has been welcomed by the industry, with experts saying the route is likely to become attractive for developers once again.

Among the measures taken to revive interest in HAM, which came into existence in 2015-16, is the government’s decision to double the frequency of payment of upfront construction support (40% of the project cost) to 10 from five earlier. The move to change the way interest is calculated on annuities paid to developers and reduce the equity lock-in period post the construction period to 6 months from two years are other positives expected to boost investor interest.