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Consider the following statements regarding Hybrid Annuity Model for infrastructure projects:
1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model.
2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.
Which of the above statements is/are correct?
1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model.
2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.
Which of the above statements is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Consider the following statements regarding Hybrid Annuity Model for i...
• Both statements are correct
Hybrid Annuity Model (HAM)
• It’s a mix of EPC and BOT-Annuity models.
• In this model the project cost is shared by the government and the private player in ratio of 40:60, respectively.
• The private player is responsible to construct and hand over the roads to the government which will collect toll (if wishes)—maintenance remaining the responsibility of the private player till the annuity period.
• Private Player is paid a fixed sum of economic compensation (called ‘annuity’, similar to the BOT ANNUITY model of past) by the government for a fixed tenure (normally 15 years, though it is flexible).
• The private player which demands lowest annuity (in bidding) gets the contract.
Hybrid Annuity Model (HAM)
• It’s a mix of EPC and BOT-Annuity models.
• In this model the project cost is shared by the government and the private player in ratio of 40:60, respectively.
• The private player is responsible to construct and hand over the roads to the government which will collect toll (if wishes)—maintenance remaining the responsibility of the private player till the annuity period.
• Private Player is paid a fixed sum of economic compensation (called ‘annuity’, similar to the BOT ANNUITY model of past) by the government for a fixed tenure (normally 15 years, though it is flexible).
• The private player which demands lowest annuity (in bidding) gets the contract.
Most Upvoted Answer
Consider the following statements regarding Hybrid Annuity Model for i...
Hybrid Annuity Model for Infrastructure Projects
Understanding the Hybrid Annuity Model is essential for infrastructure development in the country. Let's break down the two statements provided in the question.
Statement 1: It is a mix of EPC and BOT-Annuity Model
- The Hybrid Annuity Model combines elements of both the EPC (Engineering, Procurement, and Construction) and BOT (Build-Operate-Transfer) models.
- In the EPC model, the private player is responsible for designing, constructing, and delivering the project to the government for a pre-determined price.
- In the BOT model, the private player builds, operates, and maintains the project for a specified period, after which it is transferred to the government.
Statement 2: Private player constructs and hands over roads to government
- Under the Hybrid Annuity Model, the private player is responsible for designing, building, and financing the project.
- The government collects tolls to repay the private player in the form of annuity payments over a specified period.
- Once the project is completed, it is handed over to the government, which assumes responsibility for its operation and maintenance.
Conclusion
- Both statements are correct. The Hybrid Annuity Model offers a balanced approach to infrastructure development by sharing risks and responsibilities between the public and private sectors. It helps in attracting private investment and ensuring timely completion of projects while providing the government with the flexibility to focus on operation and maintenance.
Understanding the Hybrid Annuity Model is essential for infrastructure development in the country. Let's break down the two statements provided in the question.
Statement 1: It is a mix of EPC and BOT-Annuity Model
- The Hybrid Annuity Model combines elements of both the EPC (Engineering, Procurement, and Construction) and BOT (Build-Operate-Transfer) models.
- In the EPC model, the private player is responsible for designing, constructing, and delivering the project to the government for a pre-determined price.
- In the BOT model, the private player builds, operates, and maintains the project for a specified period, after which it is transferred to the government.
Statement 2: Private player constructs and hands over roads to government
- Under the Hybrid Annuity Model, the private player is responsible for designing, building, and financing the project.
- The government collects tolls to repay the private player in the form of annuity payments over a specified period.
- Once the project is completed, it is handed over to the government, which assumes responsibility for its operation and maintenance.
Conclusion
- Both statements are correct. The Hybrid Annuity Model offers a balanced approach to infrastructure development by sharing risks and responsibilities between the public and private sectors. It helps in attracting private investment and ensuring timely completion of projects while providing the government with the flexibility to focus on operation and maintenance.
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Consider the following statements regarding Hybrid Annuity Model for infrastructure projects:1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model. 2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding Hybrid Annuity Model for infrastructure projects:1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model. 2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Hybrid Annuity Model for infrastructure projects:1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model. 2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Hybrid Annuity Model for infrastructure projects:1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model. 2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements regarding Hybrid Annuity Model for infrastructure projects:1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model. 2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Hybrid Annuity Model for infrastructure projects:1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model. 2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Hybrid Annuity Model for infrastructure projects:1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model. 2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements regarding Hybrid Annuity Model for infrastructure projects:1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model. 2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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