Rs 60,000 crore of India's HAM highway projects delayed

In India, the government and private companies build highways together using a system called the Hybrid Annuity Model.

The government pays 40% of the building cost, and the company pays the other 60%.

Once the road is open, the government pays the company back over 10 to 15 years, even if few cars use the road.

This was designed so companies don't lose money just because traffic is low.

But many of these projects are very behind schedule — more than Rs 60,000 crore worth of them are delayed.

The biggest problem is getting the land needed to build the road.

Another problem is that some companies promised to build roads very cheaply to win contracts, leaving little money if costs rise.

The government gives extra time when delays aren't the company's fault and adjusts payments as costs go up.

Bigger companies with roads already earning money handle these delays better than smaller ones.