Two sweeping reforms likely in debt-ridden NHAI's HAM framework

Authority plans to slash developer upfront payment, reduce timeline for financial closure

Debt-ridden National Highways Authority of India (NHAI) is looking to introduce two major reforms in its hybrid annuity model (HAM) of highway contracts. This move would not only increase the basket of projects being offered but also ease the financial pressure on the authority.

Sources said NHAI is planning to reduce the upfront payment to road developers by at least 50 per cent. This is because it can award more projects with the same budget in hand. It is also looking to bring down the timeline for financial closure of HAM projects, in order to avoid delays in highway construction.