MoRTH pushes for an intelligent and clean construction

The Centre has introduced a financial incentive to encourage highway developers to use alternative fuel-based and technology-enabled intelligent construction equipment under the newly revised model concession agreement for Hybrid Annuity Model (HAM) projects.

Under this, developers will pay 50% less interest on the portion of their mobilisation advance used to purchase eligible electric, hydrogen or biofuel-powered construction machinery. Under the agreement, a highway developer can receive a mobilisation advance of up to 10% of the Total Project Cost. The advance normally carries interest at the average one-year MCLR of the top five scheduled commercial banks plus 1.25 percentage points.

The change comes six years after the union ministry of road transport and highways (MoRTH) issued the revised HAM Model Concession Agreement in November 2020.

To qualify for the interest relief, the developer must purchase and register new eligible equipment after the project is awarded and within 90 days of the appointed date. Registration will have to be verified through MoRTH’s Vahan database.

The revised agreement also introduces digital monitoring requirements for construction work. Automated systems installed on paving and compacting equipment will be required to record information such as the machine’s location, elevation, speed, number of passes, vibration status and asphalt surface temperature.

An official said the impact is expected to be gradual. “Digital records of paving and compaction could also help engineers identify poor-quality work and ensure that construction follows the prescribed standards.”