(The Gist of PIB) India’s first HAM project in sewerage
India’s first HAM project in sewerage
India’s first Hybrid Annuity (HAM) project in sewerage sector, the 14MLD
Sewage Treatment Plant (STP) at Sarai in Haridwar, was inaugurated by Chief
Minister of Uttarakhand.
The Sarai 14 MLD Sewage Treatment Plant is the first STP to be completed
under the Hybrid Annuity (HAM) Based Public Private Partnership Model,
involving a cost of Rs. 41.40 crores
This Plant is based on advanced aerobic biological process, Sequential
Batch Reactor (SBR) process, capable of removing the nutrients during
treatment and is a 100% eco-friendly project.
The vision of the National Mission for Clean Ganga (NMCG) is long term
and hence the capability being created would fully take care of the
requirements up to 2035.
Hybrid Annuity (HAM)
In financial terminology hybrid annuity means that the government makes
payment in a fixed amount for a considerable period and then in a variable
amount in the remaining period.
It is a mix of the EPC (engineering, procurement and construction) and
BOT (build, operate, transfer) models.
Advantage of HAM is that it gives enough liquidity to the developer and
the financial risk is shared by the government. Government’s policy is that
the HAM will be used in stalled projects where other models are not