Less need of government investment: Hybrid annuity is a better option for the government because it does not have to park a huge sum of money in one project and instead utilize the money for financing a number of projects (as government has to contribute 40% to the project equity).
Ability to finance many projects: For every one EPC project the government can finance three four hybrid-annuity contracts due to requirement of lower investment in Hybrid annuity model.
