GENERAL22 Sept 2026
Govt allows easier exit from hybrid annuity highway projects under new MCA
The government has revised the model concession agreement for highway projects. It now allows easier exit from stuck hybrid annuity model (HAM) projects through harmonious substitution. It also makes clear how much compensation promoters get when delays are the authority's fault. If you hold a HAM road project, this matters. Review your contract papers and seek advice before you plan an exit.
Key Statutory Highlights
- The revised model concession agreement introduces harmonious substitution for stuck HAM projects.
- It also clarifies compensation for delays that are attributable to the authority.
- Under HAM, the authority pays 40 per cent of the project cost upfront and the remaining amount in annuities with interest.
Actionable Advice for Taxpayers / Founders:If you are stuck in a hybrid annuity model highway project, read the revised concession agreement terms carefully and speak to your legal or financial advisor before deciding on an exit, since how the new substitution and compensation clauses apply to your contract may vary.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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