The National Highways Authority of India has proposed to fast-track the six-laning of the Bengaluru-Mysuru national highway project under the innovative hybrid annuity model.
Under this, the Union Ministry of Road Transport and Highways will invest 40% of the project cost, while the developer, the private partner, will fund the remaining 60%. The NHAI will collect toll from road users and will refund the developer for implementing the project in instalments. The model is expected to make it easier for the private player to raise funds for the project as the traffic risk is not associated with it.
The NHAI had earlier planned to implement the project under the Design, Build, Finance, Operate and Transfer (DBFOT) model, one of the project delivery methods under Public Private Partnership (PPP).
Under this model, the developer will have to fund the entire project on its own. Besides, the private player will be responsible for road maintenance and toll collection from the users.
According to B T Jwalendra Kumar, project director, NHAI, the hybrid annuity model has been proposed with an aim to expediting implementation of the project, which is estimated to cost Rs 3,600 crore. Private players are shying away from investing in PPP projects due to various reasons, including problem of raising funds. Hence, the Centre came up with the innovate model last year.
The project envisages upgrading the existing four-lane Bengaluru-Mysuru NH into six-lane road between Panchamukhi temple near NICE Road junction in Bengaluru and Columbia Asia Hospital near the ring road junction in Mysuru, covering 118 km. A service road and six bypasses at Bidadi, Ramanagaram, Channapatna, Maddur, Mandya and Srirangapatna will be developed to cater to the local traffic. Travel time between the two cities is expected to come down once it is implemented.
“We have proposed that the project be implemented under the hybrid annuity model. The tender process will begin soon after obtaining the green signal from the ministry. The land acquisition process is in the final stage. We expect a good response from the bidders to the project as it is an innovative model,” he added.
Published 22 January 2017, 19:49 IST