Consider the following statements regarding Hybrid Annuity Model for infrastructure projects 1 It is...........

Indian Economy (CDS) Industry

Consider the following statements regarding Hybrid Annuity Model for infrastructure projects:

1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model.

2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.

3. The draft National Automotive Policy, 2018 calls for incentivizing investments in R&D of commercially viable technologies through a Hybrid Annuity Model (HAM).

Which of the above statements are correct?

1 and 2 only

1 and 3 only

2 and 3 only

1, 2 and 3

छोटे Courses बड़े Results

Master Industry

Prepare through Micro-courses

Try Now

Explanation:

Hybrid Annuity Model (HAM) :

It’s a mix of EPC and BOT-Annuity models.
In this model the project cost is shared by the government and the private player in ratio of 40:60, respectively.
The private player is responsible to construct and hand over the roads to the government which will collect toll (if wishes)—maintenance remaining the responsibility of the private player till the annuity period.
Private Player is paid a fi xed sum of economic compensation (called ‘annuity’, similar to the BOT ANNUITY model of past) by the government for a fixed tenure (normally 15 years, though it is fl exible).
The private player which demands lowest annuity (in bidding) gets the contract.
The draft National Automotive Policy, 2018 calls for incentivizing PPP based industry investments in research and development of commercially viable technologies through a Hybrid Annuity Model (HAM).