The hybrid annuity model (HAM) to award road projects has encouraged investments in the sector, says Moody’s Investors Service Road construction pace set to double by FY18: Crisil

Various reforms initiated by the government to ensure speedy approvals and clearances aided the pace of construction of roads, which improved 40 per cent from an average 4.3 km per day in FY2014-15 to 6 km in FY2015-16 and is likely to reach 11 km by FY2018, says Crisil.

The key policy reforms include easing of the clearances process, ensuring 80 per cent land acquisition before the award of project, premium rescheduling, allowing developers to fully exit operational road projects, and introduction of the hybrid annuity model.