Maharashtra govt plans hybrid annuity model for water diversion schemes

Nashik: State govt plans to implement a hybrid annuity model for major water diversion projects aimed at easing drought conditions in north Maharashtra and Marathwada, with tenders likely to be floated within the next four months, water resources department minister Radhakrishna Vikhe Patil said on Friday.The proposed projects will divert water from west-flowing rivers to irrigation-deficient regions in eastern Maharashtra. "The quantum of water that could be diverted from west-flowing rivers in Maharashtra towards irrigation-deficit regions on the eastern side was earlier pegged at about 55TMC. We got the survey done again, which has now established the quantum to 78TMC. We are finalising the hybrid annuity model (HAM) with the help of private players for investment in the schemes," said Vikhe Patil.The overall cost of the water diversion projects is estimated at around 90,000 crore. Vikhe Patil said, "We have the pre-feasibility reports for the projects ready. We will make some changes and even finish with the detailed project report that will enable us to find the exact cost required for the project and the benefit of the schemes."According to the minister, govt is currently in discussions with potential investors and may invite tenders within four months once the process is finalised.Explaining HAM, Vikhe Patil said the govt will contribute 40% of the project cost during construction, while private investors will fund the remaining amount, which will be recovered through fixed, periodic payments over a mutually agreed period.Addressing concerns over water taxation, a senior WRD official clarified that private entities will be involved only in construction. "Tax collection and water recovery will remain with govt. Investment in drought mitigation infrastructure will help state save substantially on emergency water supply expenditure in the future," the official said.