HAM in jam: Highway construction projects face significant risk

Highway under construction

Crisil Research has lowered its execution forecast in National Highways Authority of India (NHAI) projects for fiscal 2019 to 3,600 – 3,800 km from earlier anticipated 4,300 km.

80% land – needs to be acquired for lenders to start disbursements

800km – hybrid annuity model projects awaiting appointed dates

3,400 km – of HAM projects were awarded last fiscal

8.4km per day – execution last fiscal

180km – projects– have gone past the five-month window available for financial closure

9.9-10.4 km per day – execution likely this fiscal, less than 11.8 km per day estimated

*Appointed date is the de facto starting date of a project, when the NHAI hands over its contract letter to a developer or concessionaire.

Source: DNA

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