Context:

• The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the construction of the 4-lane greenfield access-controlled Mokama-Munger section of the Buxar-Bhagalpur High-Speed Corridor in Bihar under the Hybrid Annuity Mode (HAM).

Project Features:

• Length: The total length of the Mokama-Munger section is 82.4 km. It forms a part of the Buxar-Bhagalpur High-Speed Corridor.
• Type: 4-lane greenfield access-controlled corridor with toll collection facility.
• Cost: The estimated capital cost of the project is ₹4,447.38 crore.
• Design Speed: The corridor is designed for a speed of 100 km/h, supporting an average vehicle speed of 80 km/h.
• Reduction in Travel Time: The construction of this section is expected to save approximately 1 to 1.5 hours of travel time.

Hybrid Annuity Mode (HAM):

• Definition: HAM is a Public-Private Partnership (PPP) model in which risk and cost are shared between the government and the private developer. In this model, the government pays 40% of the project cost in a phased manner during construction, while the remaining 60% is paid as fixed annuity after project completion.

Benefits:

• Risk Reduction: Financial risk for private developers is reduced as the government provides partial financial support during the construction phase.
• Quality Assurance: Government oversight ensures timely completion and quality of the project.
• Toll Collection: Toll collection rights remain with the government, protecting private developers from revenue uncertainty.

• Relevance in Bihar: HAM is particularly effective in developing states like Bihar as it makes large-scale infrastructure projects financially viable.

Geographical and Strategic Importance:

• Connectivity: The section connects important regional towns such as Mokama, Barhiya, Lakhisarai, Jamalpur, and Munger, ultimately linking to Bhagalpur. It provides a robust road network between southern and eastern Bihar.
• Existing Network: The existing road network from Buxar to Patna and Patna to Begusarai already includes 6-lane and 4-lane roads. The Mokama-Munger section will extend this network, ensuring seamless connectivity from Buxar to Bhagalpur.

Economic Impact:

Industrial Development

• Munger-Jamalpur-Bhagalpur Belt: This region is an emerging industrial hub, with key activities including:

• Ordnance Factories: Existing arms factory in Munger and a proposed new factory by the Ministry of Defence.
• Locomotive Workshop: Railway locomotive workshop in Jamalpur.
• Food Processing: Presence of companies like ITC in Munger.
• Textile Industry: Bhagalpur’s silk industry and proposed textile ecosystem.
• Food Packaging and Warehousing: Emerging food processing and storage center in Barhiya.

• Increase in Freight Movement: The corridor will boost movement of goods vehicles, supporting logistics and warehousing sectors.