Overview

• On August 12, the state cabinet approved 34 road packages covering 7,947 km under Panchayat Raj and 5,190 km under Roads & Buildings departments.
• Under the hybrid annuity model, the state will provide a 10 percent advance and pay 40 percent of project costs in ten instalments while contractors finance the remaining 60 percent and handle 15 years of maintenance with performance- and inflation-linked payments.
• Officials have arranged a bankers’ meeting to address contractors’ financing concerns in advance of releasing tenders for the approved packages.
• Contractor groups warned that large package sizes and inclusion of repair and maintenance under HAM could sideline small local firms and endanger roughly 120 batch-mix plants without stronger loan guarantees.
• Further tenders for 6,810 km are slated by December to continue the state’s accelerated infrastructure rollout under the HAM framework.