New Delhi, July 27 (IANS): The government on Monday said it plans to award road construction projects worth Rs.1.26 lakh crore during the current financial year.

Minister of State for Road Transport and Highways Pon Radhakrishnan informed the Rajya Sabha that the government has set a target to award 273 road projects.

According to the minister, the targeted projects will cover a total length of 12,900 km and will cost about Rs.1.26 lakh crore during 2015-16 under various schemes of the ministry.

"The government has targeted to award 273 road projects covering a length of 12,900 km amounting to Rs.1.26 lakh crore during 2015-16," the minister informed said in a written reply.

Replying to another question, the minister elaborated that the government has worked out a new model of project delivery under the public-private pPartnership (PPP) mode.

The new PPP model known as the "Hybrid Annuity Model" is being considered for awarding future road projects for implementation.

"Under the new model 40 percent of the cost is being provided by the government to the concessionaire during the construction period in five equal installments," the minister said.

The remaining 60 percent is to be arranged in the form of debt and equity that will be compensated over a 15-year period as a bi-annual annuities, the minister said.