Concerns over Rs 28 k cr state road project by planning deptÂ
Concerns over Rs 28 k cr state road project by planning dept (Representational Image)
The state’s plan to build 6,000 km of cement-concrete roads through a revised Model Annuity Hybrid (HAM) for Rs 28,500 crore has caused financial strain, according to the planning and finance departments of the state.
In February, the state cabinet approved the proposal despite objections voiced by Ministers of Finance Ajit Pawar and Culture Sudhir Mungantiwar. They had brought up concerns regarding the state’s previous HAM projects’ shortcomings as well as the financial model.
The Fadnavis government carried out the previous project in 2017 with the goal of constructing 10,000 km of roads using the HAM model. The Thackeray government later reviewed it, believing the state was paying excessively. The 30:70 model is used in the updated HAM scheme. Thirty percent will come from the state. 70% of the concessionaire’s funding must come from the market. The state has fifteen years to repay this. The Maharashtra State Infrastructure Development Corporation (MSIDC), which was established by the public works department in May of last year, is in charge of carrying out the project.
The planning department noted in its response, submitted prior to the cabinet proposal’s approval, that a total of 345 revised HAM projects totalling 13,442 km of roads were under consideration, with an estimated cost of Rs 63,850 crore. Only the first, which would have cost Rs 28,500 crore, had been presented to the cabinet.
According to the department, such a large expenditure might have a negative effect on other projects because of the state’s limited funding and the amount of infrastructure projects that still need to be finished. It further stated that the government should make sure the state’s financial resources are not depleted. It stated that a thorough explanation of the HAM-1 implementation experience was required.
