The government accorded administrative sanction for nearly ₹7,470 crore for works related to roads with drains, parks, street lighting, central medians and other development activities in Urban Local Bodies (ULBs) under the Hybrid Annuity Model (HAM).

Principal Secretary (Municipal Administration & Urban Development) S. Suresh Kumar stated in a press release that major projects worth about ₹40,744 crore have been sanctioned, taken up or planned under various schemes and funding mechanisms and HAM was an important part of it.

Of these, 514 projects worth ₹15,274.21 crore are under implementation under AMRUT 2.0, AIIB and UIDF Tranches I and II while new proposals under UIDF Tranches III and IV, Urban Challenge Fund and HAM account for about ₹25,470 crore.

In addition to that, works worth ₹1,176 crore were taken up since 2024 through LRS/BPS, ULB General Funds, UDA funds and Sub-Plan resources.

Mr. Kumar said the preparation of gap assessment reports and infrastructure investment plans for all 123 ULBs, covering existing infrastructure, requirements up to 2029 and the residual gap to be bridged was a key element of the government’s urban development strategy.

The HAM programme was aimed at bridging the identified urban road infrastructure gaps while simultaneously improving drainage, lighting, medians and public spaces. Of the ₹5,500 crore capital works component within the total ₹7,470 crore sanctioned, ₹4,656 crore was earmarked for roads with drains, ₹510 crore for parks, ₹247 crore for street lighting and ₹88 crore for central medians.

The concessionaire-financed component would be repaid over 10 years through 40 quarterly instalments through an escrow account supported by identified urban-sector revenues, including LRS/BPS receipts, development approval fees and MIG/LIG layout revenues.

The HAM also provides for 10 years of O&M by the concessionaires, ensuring continued upkeep of the assets after construction.

A technology-based monitoring system has been put in place for physical and financial progress, geo-tagged photographic evidence, milestones, quality control data, material test results, third-party quality audits and early identification of delays, Mr. Kumar added.

Published - August 20, 2026 08:52 pm IST