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The Maharashtra Cabinet, chaired by Chief Minister Eknath Shinde, has approved a substantial ?36,964 crore for the construction of 6,000 kilometers of cement concrete roads under the revised Hybrid Annuity Model (HAM). This decision marks a significant increase from the ?28,500 crore initially approved in February for asphalt roads.
The revised model, which has been in place since March 2017 and was later updated by the MVA government led by Uddhav Thackeray, involves private sector participation. Under the new approval, the Maharashtra State Infrastructure Development Corporation (MSIDC) will oversee the project, with the state government contributing 30% of the costs and MSIDC raising the remaining 70% from the market.
The updated funding plan has increased the states contribution to ?2,589 crore, while MSIDCs share rises to ?5,875 crore. The escalation in costs is attributed to the switch from asphalt to cement concrete roads, which has led to a higher expenditure.
The 6,000 km of roads will be managed by MSIDC for a period of 17.5 years, with the project implemented on an Engineering, Procurement, and Construction (EPC) basis. The construction is expected to take 2.5 years, followed by a 5-year liability period.
In February, concerns were raised by the states planning and finance department regarding the financial burden of the project, noting that it could affect other state infrastructure initiatives. However, the cabinet has proceeded with the revised plan, emphasizing the long-term benefits of the upgraded road infrastructure. |
