Mumbai: The Maharashtra state cabinet, chaired by Chief Minister Eknath Shinde, has approved a significant funding increase for the Revised Hybrid Annuity Scheme (RHAS). Instead of the original plan to resurface 6,000 kilometers of roads with asphalt, the revised scheme will now involve cement concreting of these roads.
The updated budget for this initiative is set at Rs 36,964 crore, as approved in Tuesday’s cabinet meeting. Initially, the asphalt resurfacing was expected to cost Rs 28,500 crore. Due to this change, the government’s financial commitment to the scheme has increased by Rs 2,589 crore, bringing the total government participation to Rs 11,089 crore.
Additionally, the Maharashtra State Infrastructure Development Corporation’s (MSIDC) contribution has been raised to Rs 5,875 crore. The 6,000 kilometers of roads will be transferred to the MSIDC for a period of 17.5 years. This shift from asphalt to cement concreting is expected to enhance the durability and longevity of the state’s road infrastructure.
The Hybrid Annuity Model, which involves private sector participation, has been in place since March 2017, following Centre’s guidelines. It was later revised by the MVA government led by Uddhav Thackeray.
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The newly established Maharashtra State Infrastructure Development Corporation (MSIDC), operating under the Public Works Department, will oversee the road construction. Under the revised HAM, the state government will contribute 30 per cent, while MSIDC, as the project implementer and concessionaire, will secure the remaining 70 per cent from the market.
