Maharashtra takes a step towards Toll-free Roads with New Road Development Policy

Posted On Friday December 8th, 2017
Maharashtra takes a step towards Toll-free Roads

December 5, 2017: The Public Works Department conducted a first-of-its-kind Interactive Video Conference cum Webinar with 450+ concessionaires in which the foundation stone for ‘Utkarsh MahaMarg’ was laid down.

The Public Works Department, Maharashtra has launched an innovative Hybrid Annuity Model for constructing 10,000 km of roads in the state.
Taking a step towards fulfilling the vision of toll-free Maharashtra, Public Works Department of the state has launched the new road development policy under the Hybrid Annuity Model. “Under this model, the toll liability is not with the concessionaire,” said Shri Chandrakant Dada Patil, Minister for Public Works Department, Maharashtra addressing contractors through the Webinar.
In the Live Video Conference, a participation of Contractors across the 36 districts of Maharashtra and 18 other states in India was observed. With the innovative approach of PWD, the Webinar also saw Contractors from 7 different countries engaging towards Maharashtra’s Road Development. Mr. Umesh Khanna, Head of Coordination, Shapoorji Pallonji, speaking on this said, “The webinar was a much-appreciated effort and laid the foundation for a positive sentiment regarding Utkarsh MahaMarg in the minds of all concessionaires. Every concern and doubt was resolved by the Public Works Department dignitaries present in the webinar. We are fairly confident of the project’s execution and its success now seeing the support from the Government. Patil sir’s personal involvement in the Project gives us immense confidence.”
With the new policy, 10,000 km of road projects is expected to be completed within a two-year time-frame for which the state has invited international bidding for 150 projects to ensure maximum participation by contractors.
“We have also improvised the HAM in the state by going beyond the standard hybrid annuity model to make it robust and financially viable for all parties involved.  In the Standard HAM Model, 40% payment is made during the construction period and rest in an annuity during the maintenance period of 15 years. However, in Maharashtra, 60% will be made during the construction period and the maintenance period would be 10 years only,” Minister Patil said.
Termed as Utkarsh Mahamarg, the 10,000 km of road projects would see bids worth Rs 30,000 crore and the reduced maintenance period to 10 years from 15 years earlier would result in early recovery of the revenue by concessionaire. The ticket size of these brown-field road projects, which does not necessitate land acquisition, has been reduced to just over 50 km from earlier 100 km. The concessionaire interests would be safeguarded from the future price increase, by linking the inflation index to operation and maintenance.