The state govt has approved the revised estimate of Rs 36,964 crore to build 6,000km of pavement quality concrete (PQC) roads across the state under the new hybrid annuity model (HAM). A govt resolution (GR) to that effect was issued on Thursday by the public works department. The govt will extend Rs 11,089 crore (30%) share for the project.
Under the new HAM model, 30% finance is to be borne by the govt, while 70% is to be raised by the concessionaire from the market, which will be repaid by the govt over a 17-and-half year period. Earlier, the same ratio was 60:40. In the new model, the project is being implemented by Maharashtra State Infrastructure Development Corporation (MSIDC) as a concessionaire itself, which was formed last May under the public works department. Thus, MSIDC will get the bigger contractors on board and the banks to get the work done, and money will be paid to them through MSIDC.MSIDC, with the help of private entities and banks, will invest around Rs 25,875 crore (70%).
It may be recalled that in March this year, the state finance and planning department had raised concerns about the financial burden the earlier estimated cost of Rs 28,500 crore would bring on the state treasury. In the earlier plan, the roads were to be asphalted. The proposal was cleared by the state cabinet in February this year, despite issues raised by finance minister Ajit Pawar and cultural affairs minister Sudhir Mungantiwar over the HAM model of financing and the drawbacks faced earlier.
It may be recalled that the earlier project to build 10,000km of roads through the HAM model was implemented in 2017, by the Fadnavis govt. It was later reviewed by the Thackeray govt, which felt the state was paying too much. As per the planning department, all 345 revised HAM projects for 13,442km of roads were being considered, which would cost Rs 63,850 crore. Of these, only the first phase, which would cost Rs 28,500 crore, had come before the cabinet.
