FOR THE FIRST TIME IN RAJASTHAN HYBRID ANNUITY MODEL(HAM) IN WATER SUPPLY PROJECTS

HAM will be implemented in 5 drinking water projects of Rajasthan. These projects under Jal Jeevan Mission will be implemented by Public Health Engineering Department (PHED). As per the proposal more than 4 lakh 20 thousand tap connections will be installed in around 5000 villages benefiting more than 20 lakh citizens. An expenditure of Rs 18,879 crores would be incurred on these projects. Under HAM department will invest 40% of the total project cost and the contractor would contribute the rest i.e. 60%. Post completion the contractor would be paid in 20 instalments spread over 10 years. Thus HAM would decrease the project initiation capital requirement for the govt.. Additionally it would improve the construction quality too. Operation and maintenance of the water supply project for 10 years post initiation would be undertaken by the same contractor who undertook the installation of the project. 

Water projects lined up for HAM-:

1.Water Supply Project from Chambal River for 1426 villages of Karauli and Sawai Madhopur districts

• Estimated Cost: ₹3066.90 crore.

2. Water Supply Project from Chambal River for 1237 villages of Alwar and Bharatpur districts

• Estimated Cost:₹ 4813.67 crore.

3. Kaliteer Water Supply Project (from Chambal River) for 470 villages of Dholpur and Bharatpur districts

• Estimated Cost: ₹606.79 crore.

4.Water Supply Project from Jakham Dam for 1473 villages of Chittorgarh, Pratapgarh, Rajsamand, and Udaipur districts

• Estimated Cost: ₹ 3266.18 crore.

5.Water Supply Project from Indira Gandhi Canal Project (IGNP) for the remaining villages of Sikar and Jhunjhunu districts

• Estimated Cost: ₹7125.97crore.

Detailed Explanation for RAS Aspirants

• Hybrid Annuity Model (HAM):
  • A Public-Private Partnership (PPP) model combining EPC (Engineering, Procurement, Construction) and BOT (Build-Operate-Transfer) elements.
  • Introduced by the Government of India in 2016 for highways, now applied in water infrastructure.
  • 40% payment made by the government during construction; remaining 60% is borne by the private entity and repaid later as annuities.
• Significance for Rajasthan:
  • First time in the state’s water supply sector under JJM.
  • Helps in timely project completion and better maintenance due to private sector efficiency.
  • Reduces upfront financial stress on the state exchequer.
• Jal Jeevan Mission (JJM):
  • Launched in 2019 by the Ministry of Jal Shakti, Government of India.
  • Objective: To provide Functional Household Tap Connections (FHTCs) to every rural household by ensuring safe and adequate drinking water supply.
  • Implemented jointly by Centre and State on fund-sharing basis (50:50 for most states).
• Benefits Expected:
  • Improved water accessibility in drought-prone and hilly districts.
  • Creation of employment opportunities in construction and O&M.
  • Encouragement of private investment in public welfare sectors.
• Challenges:
  • Ensuring quality control over private contractors.
  • Timely payment of annuities to sustain investor interest.
  • Maintaining water quality standards under long-term O&M contracts.

MCQ

Question 1:
Which of the following statements about the Hybrid Annuity Model (HAM) implemented under the Jal Jeevan Mission in Rajasthan is correct?
A. Government bears 60% of the cost and private investors 40%
B. Government bears 40% of the cost and private investors 60%
C. Entire funding is by private investors
D. It is a 100% grant-based model

Answer: B
Explanation: Under HAM, 40% of the project cost is funded by the government during construction, while 60% is borne by private contractors, repaid later in annuity installments. This model balances public control with private efficiency, reducing immediate fiscal pressure while maintaining long-term accountability.

प्रश्न 1:
राजस्थान में जल जीवन मिशन के अंतर्गत लागू किए गए हाइब्रिड एन्युटी मॉडल (एचएएम) के संबंध में कौन-सा कथन सही है?
A. सरकार 60% लागत वहन करती है और निजी निवेशक 40%
B. सरकार 40% लागत वहन करती है और निजी निवेशक 60%
C. पूरी लागत निजी निवेशक वहन करते हैं
D. यह 100% अनुदान आधारित मॉडल है

उत्तर: B
व्याख्या: हाइब्रिड एन्युटी मॉडल में परियोजना लागत का 40% सरकार निर्माण चरण में देती है तथा 60% निजी निवेशक वहन करते हैं जिसे 10 वर्षों में एन्युटी भुगतान से लौटाया जाता है। इससे सरकार पर आरंभिक वित्तीय भार कम होता है और गुणवत्ता बेहतर सुनिश्चित होती है।