PRELIMS BITS – SCHEMES
Context:
Two ropeway projects in Uttarakhand have received approval under the Parvatmala Pariyojana initiative.
- Nodal Ministry: Ministry of Road Transport and Highways (MoRTH). The project is being executed by National Highways Logistics Management Limited (NHLML), a special-purpose vehicle of NHAI.
- Launch Year: Announced in the Union Budget 2022-23 as the National Ropeways Development Program.
- Objective: To develop ropeway infrastructure and alternative mobility solutions to enhance connectivity, ease commuter travel, and boost tourism, particularly in hilly regions.
- Scope: Plans include over 250 ropeway projects covering more than 1,200 km in the next five years.
- Implementation Model: Public-Private Partnership (PPP) under the Hybrid Annuity Model (HAM).
- Funding Structure:
- 60% contribution from the Government of India.
- 40% investment from private sector participants.
Hybrid Annuity Model (HAM) – Overview
- Combination of EPC (Engineering, Procurement, and Construction) & BOT (Build, Operate, Transfer) models.
- Cost Sharing:
- The government provides 40% of the project cost as construction support.
- The remaining 60% is arranged by the private developer.
- Role of Private Players:
- Responsible for constructing the infrastructure and later handing it over to the government.
- The government manages toll collection.
- Annuity Payments: The private developer receives fixed annuity payments from the government over a set period, minimizing revenue risks.
- Bidding Process: The contract is awarded to the developer requesting the lowest annuity.
- Risk Allocation: The government bears the toll revenue risk, while the private entity is responsible for construction and maintenance.
- Implementation History: Introduced in 2016, with around 30 highway projects awarded under HAM by NHAI.
Major Ropeway Projects in India
- Longest Ropeways:
- Auli Ropeway (4 km) – currently India’s longest.
- Mussoorie-Dehradun Ropeway (5.5 km) – under construction, set to surpass Auli Ropeway.
- First Ropeway: Rajgir Ropeway (Bihar), built in the 1960s.
- First Urban Ropeway: Kashi Ropeway, the world’s third urban public transport ropeway.
Significance of Ropeways in India
- Geographical Feasibility: Given that 30% of India’s terrain is mountainous, ropeways offer an efficient transportation alternative.
- Improved Urban Transport: Their ability to travel in straight lines helps reduce travel time, making them suitable for congested cities where metro and road networks may be impractical.
- Minimal Land Acquisition: Unlike traditional transport systems, ropeways require limited ground infrastructure, reducing land-use conflicts.
- Cost-Effective Maintenance: A single power plant and operator can manage multiple cable cars, lowering operational expenses.
- Eco-Friendly: Ropeways generate minimal dust and have a low environmental footprint.
- Tourism Promotion: Enhanced access to religious and tourist sites.
- Economic Benefits: Facilitates local trade, improves employment opportunities, and supports regional economic development.
