MoRTH eases norms for HAM projects

Reportedly, the MoRTH has eased norms for hybrid annuity model (HAM) projects. The government will now make the upfront construction payment to a highway project concessionaire under HAM in 10 tranches as against 5, subject to the overall ceiling of 40 per cent of the project cost. Increasing the frequency of the instalments will help concessionaires better manage their working capital requirements. Besides, the release of upfront payments during the construction period will be linked to the physical progress of the project. The annuity payment will be made on the reducing balance of completion cost at an interest rate equal to the average of the one-year marginal cost of the fund-based lending rate of the top five scheduled commercial banks plus 1.25 per cent.