Cabinet approves development of 6 lane Greenfield Elevated Corridor & Ramps/Loops & Foot Over Bridge between National Highway-19 and Varanasi Ring Road in Uttar Pradesh on Hybrid Annuity Model at total Capital Cost of Rs.14447.64 Crore under NH(O)

Why in news

The Cabinet Committee on Economic Affairs has approved the development of a 46.039 km long, six-lane elevated corridor and associated infrastructure to connect National Highway-19 (NH-19) with the Varanasi Ring Road, aiming to decongest Varanasi city and improve urban mobility.

Exam relevance

GS3 · Economy, Governance, Science & Technology · Prelims · Mains

Key facts

1. The project involves the development of a 46.039 km long, six-lane elevated corridor and associated infrastructure.
2. It will connect National Highway-19 (NH-19) with the Varanasi Ring Road in Uttar Pradesh.
3. The project aims to decongest Varanasi city and improve urban mobility.
4. It will be implemented under the Hybrid Annuity Model (HAM).
5. The total capital cost for the project is Rs. 14,447.64 crore.
6. The civil construction cost is Rs. 6,037.85 crore (excluding GST).
7. The land acquisition cost is Rs. 541.11 crore.
8. The project is designed for an operating speed of 80-100 km/h.
9. It is expected to reduce average travel time in the project influence area by approximately 67%, from 60 minutes to 20 minutes.
10. Travel time between NH-19 and Kashi Railway Station is expected to reduce from 50 minutes to 25 minutes.

Prelims pointers

• The project connects NH-19 and Varanasi Ring Road.
• It is a 46.039 km long, six-lane elevated corridor.
• Implementation is under the Hybrid Annuity Model (HAM).
• Total capital cost: Rs. 14,447.64 crore.
• Expected travel time reduction: approx. 67% in the project influence area.
• The project is located in Uttar Pradesh.

Mains practice question

Examine the significance of the Hybrid Annuity Model (HAM) in the context of India's highway development. Discuss the potential benefits and challenges associated with the recently approved elevated corridor project in Varanasi.

Static linkage

The project falls under the National Highways (NH) sector, which is crucial for India's infrastructure development and economic growth. The Hybrid Annuity Model (HAM) is a public-private partnership (PPP) model used for highway construction, where the government bears 40% of the project cost and the private developer arranges the remaining 60%. This model aims to reduce the financial burden on the government and leverage private sector efficiency.

Significance

This infrastructure development project is significant for improving urban mobility and decongesting traffic in Varanasi, a major religious and cultural city. The reduction in travel time will enhance economic activity by facilitating smoother movement of goods and people. The implementation under the Hybrid Annuity Model (HAM) signifies the government's continued reliance on PPP models for large-scale infrastructure projects, aiming to optimize resource utilization and expedite project completion. The focus on Greenfield development and elevated corridors indicates a strategic approach to urban planning and traffic management.