Gadkari Proposes Flexibility in Highway Construction Model

Union Minister Nitin Gadkari suggested making the Hybrid Annuity Model (HAM) for highway construction more flexible and market-driven, allowing developers to invest beyond the current 60% limit. He also highlighted a significant increase in toll collections due to GNSS-based electronic toll systems and suggested exemptions for state-transport buses.

Union Minister Nitin Gadkari on Tuesday advocated for a more adaptable approach to the Hybrid Annuity Model (HAM) in highway construction. Gadkari emphasized the need for a market-driven model where contractors could invest more than the baseline 60%, ensuring timely project completion.

Gadkari pointed out that under the current HAM model, the government contributes 40% of the project cost, with the remaining 60% coming from the developers. 'Why should the government always provide 40 per cent even if the contractor is willing to invest more?' he questioned during an event.

Additionally, Gadkari announced that toll collection in India is set to rise by Rs 10,000 crore following the adoption of a Global Navigation Satellite System (GNSS)-based electronic toll system. The initiative aims to eventually replace physical toll booths, bringing a seamless tolling experience for highway users. He also proposed toll exemptions for state-transport buses.

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