Concerns are mounting over the future of the Hybrid Annuity Model (HAM) in Rajasthan’s power sector following the prolonged medical leave of Alok, Additional Chief Secretary (Energy), who was the key architect behind its introduction.
Designed to boost private sector participation and investment, the HAM model has seen notable success in the road sector but remains relatively untested in the energy domain. Alok had championed the adaptation of HAM to the power sector, pushing for reforms aimed at reviving financially distressed discoms burdened with debts exceeding ₹1 lakh crore.
“Alok ji is recovering from a serious illness and may not return soon,” a senior official from the energy department said. “Few officers are keen to pursue the HAM model in his absence, despite the department having floated tenders under the scheme.”
What is the HAM Model?
The Hybrid Annuity Model (HAM) is a Public-Private Partnership (PPP) framework that blends elements of the EPC (Engineering, Procurement, and Construction) and BOT (Build-Operate-Transfer) models. Under this scheme, the government funds a portion of the project—typically around 40%—while the private developer covers the rest. Instead of paying upfront, the government makes annuity payments over time to reimburse construction and operations & maintenance (O&M) costs. This model reduces immediate government expenditure and attracts private sector efficiency.
Reform Vision Put on Hold
Alok, an experienced bureaucrat with a strong background in the energy sector and prior stints at the National Highways Authority of India (NHAI) and the Union Power Ministry, was given a free hand to bring transformative changes. He had enlisted the services of global consultancy A.T. Kearney to streamline operations, reduce transmission costs, and optimize resources.
“In Alok’s absence, the department’s priorities may shift,” the official added. “Currently, Arti Dogra, who serves as Chairperson of the Discoms and CMD of Jaipur Discom, is overseeing the energy department. However, a new energy chief is expected to be appointed in the upcoming transfer list—potentially bringing a different vision to the table.”
As Alok’s return remains uncertain, the power sector’s ambitious reform agenda under the HAM framework now faces a cloud of uncertainty.
