Experts of power sector are now skeptical about the implementation of Hybrid Annuity Model (HAM) model in Rajasthan in power sector.
The model which aims to bring larger participation and investment of private player in the power sector was introduced by Alok, additional chief secretary energy, who is on long leave.
“Alokji is recuperating from a prolonged illness. He may not join soon. Not many officers are interested in implementing HAM model in power sector. This model is quite popular in road sector,” said a senior official of energy department adding that the department, though has floated tender for HAM.
What is HAM model?
The Hybrid Annuity Model (HAM) in the power sector, a variant of Public-Private Partnerships (PPPs), involves a mix of government and private sector funding for power projects. It combines elements of Engineering, Procurement, and Construction (EPC) and Build-Operate-Transfer (BOT) models, with the government providing a portion of the project cost and the private developer arranging the rest. It saves government from making huge investment and paying up upfront.
The government makes annuity payments to the developer throughout the concession period, covering their construction costs and O&M expenses again their investment (typically 60% of the total cost).
Alok had lined up reformative steps
Alok, who has a vast experience in power sector has lined up reformative steps to bail out discoms which are running in debt of over Rs 1 lakh crore. He had worked in NHAI and union power minister during his deputation at centre. He was trying to implement the best practices in state's power sector. For that he was given free hand.
He has roped in global management consulting firm A.T Kearney to trim down the operation and transmission cost while optimising available resources.
“In his absence, the sector will be looked upon in a different way. Currently, Arti Dogra, who is chairperson discoms and cmd Jaipur discom, is handling the charge in place of Alok. In the next transfer list, a new energy chief is likely to be appointed who may have different vision,” the official said.
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