HYBRID ANNUITY
First section of Varanasi ropeway to be ready by August 2024
India's first urban ropeway project, the Varanasi Ropeway Project, is set to complete a section linking Varanasi Cantonment Railway Station to RathYatra by August 2024, under the National Ropeways Development Programme, 'Parvatmala Pariyojana'.
Revamping of BOT model is tactical move to attract private capex: Ind-Ra
India's government is revamping the built-operate-transfer (BOT) model to attract private capital, which is expected to surpass Rs 1 trillion by 2030. The government has successfully implemented 400 Hybrid Annuity Model road projects worth over Rs 4 trillion in the past seven years, balancing risk between private and public partners. The government's focus on monetization via the National Monetisation Pipeline has attracted foreign investors.
Road ministry sanctions Rs 2,675 cr for four-laning of NH 748A in Karnataka
The road ministry has sanctioned Rs 2,675.31 crore for the four-laning of the Belgaum-Hungund-Raichur section of National Highway-748A in Bagalkot and Belgavi districts of Karnataka, covering a total length of 92.40 km. The initiative is part of the Panaji-Hyderabad EC10 corridor, connecting industrial hubs.
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Highway building gathers pace in Q1
Highways would have been constructed at a faster pace but for the irregular rains, said officials. Sector watchers said the upcoming state assembly elections in December could also cause some delays once the model code of conduct for the polls kicks in.
KKR unit plans to buy road assets from PNC for $1 billion
Private equity firm KKR's Highways Infrastructure Trust is in talks to buy a 12-road project portfolio from construction firm PNC Infratech for an enterprise value of $1.1bn. The deal would see KKR acquire 11 HAM roads and one BOT road located across the Indian states of Uttar Pradesh, Madhya Pradesh and Rajasthan. Seven of the 12 road projects are already operational, while the others are expected to become so within the next three to four months.
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KKR and Sekura among companies in fray for Ashoka's road assets
"While many HAM assets are on sale in the market, they are small two-three asset portfolios. Ashoka's portfolio is one of the biggest HAM portfolios available and hence it has seen interest from multiple players such as KKR, Edelweiss, Cube as well as Shrem," said one of the people.
Centre brings uniformity in smoothness of national highways
Roughness of a road is measured in millimetres per kilometre (mm/km) a lower value means smoother driving experience. It has been decided that roughness for a flexible pavement road is desirable at 2000 mm/km and acceptable to 2400 mm/km. For a rigid pavement road, the desirable roughness has been fixed at 2200 mm/km and acceptable is 2400 mm/km.
NHAI road award in H1 FY'23 drops 60%: Crisil
The state-owned road building agency has floated tenders worth about 2,200 km so far this fiscal, which is 36 per cent higher than the corresponding first half of the last fiscal.
IRB Infrastructure Developers offers Vadodara Kim Expressway to IRB InvIT Fund
The company, in its board meeting, has approved the preliminary non-binding proposal for transfer of the said project to the IRB InvIT Fund, which is a publicly offered and listed Infrastructure Investment Trust, sponsored by the company.
Welspun Enterprises bags Rs 4,636-cr order from civic body BMC
Part of the Welspun Group, Welspun Enterprises is a infrastructure development company with specialisation in road and water projects under the Hybrid Annuity Model (HAM) and via large-value Engineering, Procurement and Construction (EPC) contracts. It also undertakes Build-Operate-Transfer (BOT) projects. In the highway sector alone, the company has successfully completed six BOT (Toll) Road projects with a total length of over 500 km.
Huge market available for surety bonds in India: NHAI member
Addressing an event organised by industry body Assocham, NHAI member Manoj Kumar further said the NHAI is working to expand the construction market because "as a country, we had a certain level of construction capability in a strategic manner by having contracts of various sizes".
Karnataka High Court stays retro tax call on annuity to infra companies
A host of summons have been issued by the GST authorities since the issuance of clarification after the GST Council decided to exempt toll payments from GST.
CII makes case for replacing bank guarantees with surety bonds in infra sector
CII urged the government to consider replacing bank guarantees with surety bonds and also develop the municipal bond market so that urban local bodies can raise funds for investing in infrastructure.
NHAI to double down on road project awards in second half
The pace of awarding is expected to more than double in the second half of the current fiscal year compared with 1,900 km in the first six months.
GST levy on annuity payments of BOT-HAM projects to have limited impact on project cash flows: Icra
For projects bid between July 1, 2017, and October 13, 2017, NHAI would not reimburse the GST on annuity under the change in law as bids were invited inclusive of GST.
GST: Taxability of annuity on road construction still a grey area
In its recent meeting the Council had clarified that annuity paid for 'service by way of access to a road or a bridge' is exempt from GST.
NHAI extends bidding deadlines for Rs 50,000 crore projects
While new bids will continue to be invited, postponement of existing bid deadlines could hurt the authority’s target of awarding about 2,500 km of road projects in the first quarter of FY22.
Dilip Buildcon wins Rs 1,137 crore contract from NHAI in Karnataka
"DBL has received letter of acceptance (LoA) for a new HAM project 'Sannur to Bikarnakette' under Bharatmala Pariyojana in the state of Karnataka (package III)," the company said in a regulatory filing.
Another infra boost: Road projects may see easier exits, frequent milestone payments
The Ministry of Road Transport and Highways has made changes to the concession agreement for projects built on the hybrid annuity mode (HAM), permitting exits in six months as opposed to two years earlier.
Changes to hybrid annuity model will help protect returns for road project developers: Icra
Currently, the prevailing low bank rate is expected to reduce the overall inflows for a HAM project thereby adversely affecting its debt coverage metrics and returns to the investors, the rating agency said in a statement.
Dilip Buildcon bags Rs 1,274 crore highway expansion project in Karnataka from NHAI
The project to widen a section of NH 648 falls under the Bharatmala Pariyojana.
Proposed concession changes inadequate to revive private sector participation in toll road projects: Ind-Ra
"Proposed changes in the concession agreement of build-operate-transfer (BOT) projects such as non-issuances of work orders until 90 per cent land acquisition, de-scoping provisions akin to hybrid annuity model (HAM) projects, and transfer of projects after lenders' approval are positive moves," Ind-Ra said in a statement.
NHAI to check on liquidity of banks before HAM projects
The NHAI will soon call a meeting with banks to ensure that there are sufficient funds before the authority bids out projects under the hybrid annuity mode.
How did the month of June pan out for the infrastructure sector and what's in store for the future
Despite a new year and the new budget, the general tone with regard to financing of projects is largely the same.
Construction cos prefer pure EPC jobs to annuity projects
The key reason for this shift is the inability to secure financial closure for existing HAM projects.
NHAI to miss its target by 33-37% for the year: ICRA
For some of the projects, there was a delay in announcing the appointed date, ICRA said.
NHAI projects may fall short by 33-37% of FY19 target: Report
As on March 31, 2018, NHAI has around 15,000 km of portion, which included projects awarded over the last five years, under completion.
IRB Infra ties up Rs 981 crore from lenders for Vadodara-Mumbai Expressway section
The support from National Highways Authority of India for the project will be Rs 817 crore while the equity contribution from the company will be Rs 245 crore.
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