Hybrid annuity model approved for Namami Gange Programme

The central government has approved a proposal for implementing wastewater treatment projects on the hybrid annuity model, a type of PPP model proposed for the Namami Gange programme. In this model, up to 40 per cent of the capital investment will be funded by the central government based on construction-linked milestones and the balance will be funded through an annuity over the contract term of up to 20 years. Keeping in view the specialised nature of this model, the government is establishing an SPV to plan, structure, procure concessionaires and monitor the implementation of the projects. The SPV will also be responsible for developing a market for treated wastewater through appropriate policy advocacy under the overall guidance of the National Mission for Clean Ganga.