New Delhi, Sept. 21 -- The Centre has introduced a financial incentive to encourage highway developers to use alternative fuel-based and technology-enabled intelligent construction equipment under the newly revised model concession agreement for Hybrid Annuity Model (HAM) projects.

Under this, developers will pay 50% less interest on the portion of their mobilisation advance used to purchase eligible electric, hydrogen or biofuel-powered construction machinery. Under the agreement, a highway developer can receive a mobilisation advance of up to 10% of the Total Project Cost. The advance normally carries interest at the average one-year MCLR of the top five scheduled commercial banks plus 1.25 percentage points.

The change comes six year...