Govt to upgrade 3,000 km roads in Vid on Hybrid Annuity model

Source: The Hitavada      Date: 05 Sep 2017 10:35:55


Special Correspondent,

Project cost in Vidarbha will be Rs 7,000 cr

Nagpur division projects to cost Rs 4,323 cr

Moving ahead to remove backlog and improve road infrastructure in Vidarbha, Maharashtra Government has decided to upgrade almost 3,000 km roads by spending a whopping Rs 7,000 crore in Vidarbha in next two years. Public Works Department (PWD) is adopting a Hybrid Annuity Model for the first time on the lines of Road, Transport Department of Government of India.

Nitin Gadkari, Union Minister for Surface Transport and Shipping has introduced ‘Hybrid Annuity’ model to develop roads at national-level. Maharashtra Government has decided to implement this system to improve total 10,000 kms road network in the state, this includes 3,000 kms roads in Vidarbha. The total cost of the project is Rs 30,000 for entire Maharashtra.

The State has a total road length of 2.25 lakh kms including national highways, state highways, district roads and roads belonging to local bodies. The Public Works Department maintains about 90,000 km road length in the state. The government will pay the cost of roads by deferred payment method to the contractors in next 15 years. The contractor will be responsible for the maintenance of the road for next 15 years.

Ulhas Debadwar, Chief Engineer of Public Works Department, Nagpur division while talking to The Hitavada said, the PWD has divided the 34 roads of Nagpur division in 11 packages under this project. Each contract will cost between Rs 300 crore and 500 crore. The total cost of the project in Nagpur division is Rs 4,323 crore. The department has proposed strengthening, widening of present road network. However, there is no new land acquisition proposed in the project, he added.

The State government, which has so far relied on build-operate-transfer model or engineering procurement contracts for infrastructure development works, has decided to opt for the Centre’s Hybrid Annuity model to cut down on the large initial investment required for the project.

The government has proposed to spend Rs 3,500 crore on this project in current financial year.
Debadwar said, the Hybrid Annuity model is a balance between a public private partnership contract and an engineering procurement contract as the government puts in 40 percent, while the contractor contributes the rest. The private company recovers its investment over the next 15 years through installments from the government.

It may be mentioned that it is the responsibility of the State Government to improve the road condition in every five year but this has been neglected due to lack of funds. The roads are in shoddy condition and require immediate repairs by the department. The PWD does not have enough funds to maintain the quality of the roads, therefore, the Government has decided to adopt Union Government model.

The State Government has selected those roads under the project that are essential for connectivity to taluka headquarters, district headquarters, agricultural and industrial centres, tourist and pilgrimage places, and those that cater to a large population or used heavily.