Archive · 26 Aug 2026
Indian Railways Explores Private Models for ₹2.62 Trillion Pipeline
Indian Railways has a very large group of projects that may need private investment.
The projects are worth ₹2.62 trillion in total.
One possible method is called the hybrid annuity model, or HAM.
Under HAM, Railways helps pay for construction.
It also makes regular payments based on how the asset is created and performs.
This can make it safer for private companies to build railway projects.
The model may be useful for new trunk lines and for adding tracks to existing routes.
These projects may not have their own clear source of income at the beginning.
Indian Railways is considering new private investment models for a ₹2.62 trillion project pipeline.
The hybrid annuity model, or HAM, could become the main vehicle for larger capacity-augmentation projects.
Potential projects include new trunk lines, route doubling and tripling, and other railway infrastructure.
Under HAM, Railways shares construction financing and makes annuity payments tied to asset creation and performance.
Deloitte India’s Anurag Gupta said the model could reduce traffic and revenue risks for developers.
- Who
- Indian Railways, private developers, and Deloitte India partner Anurag Gupta.
- What
- Indian Railways is exploring private investment models, with HAM proposed for major capacity-augmentation projects.
- Why
- To help finance projects without immediately identifiable standalone revenue streams and reduce traffic and revenue risks for developers.
- Project pipeline
- ₹2.62 trillion
- Investment model
- Hybrid annuity model (HAM)
- Potential uses
- New trunk lines, route doubling and tripling, and other railway infrastructure
- Construction financing
- Shared by Railways under HAM
- Developer payments
- Annuity payments linked to asset creation and performance
- Risk effect
- The model can reduce traffic and revenue risk for developers