Roads & Highways - Pandemic shocks notwithstanding, government's thrust on infrastructure to ensure execution momentum continues in FY22
Report: Brickwork Ratings
The Indian road network is the second largest globally, with a length of around 63.86 lakh km. The outbreak of the virus towards end-FY20 had created panic globally, leading to the temporary suspension of economic activity. The road sector in Q1FY21 suffered a major setback during the initial lockdown, resulting in a delay of commercial operation dates by three to six months for most projects. However, once the lockdown was gradually lifted, it gained pace in terms of construction, project allocation and toll collections. The execution was robust and the pace of 37 kms per day recorded in FY21 was the highest ever recorded by National Highways Authority of India (NHAI) in a financial year.
Going forward, in FY22, Brickwork Ratings (BWR) expects road construction to pick up pace on account of various government initiatives in this sector such as the National Infrastructure Pipeline (NIP), National Monetisation Pipeline (NMP), Bharatmala Pariyojana, changes in the Hybrid Annuity Model (HAM) and fast pace of asset monetisation.
This is a premium article available exclusively for our subscribers.
If you are already a subscriber, please Login
If not, subscribe now and get access to well researched articles & reports on infrastructure construction, equipment & machinery, innovations & technology, project reports, case studies, and more. All this by simply paying just ₹200/- for a month of complete portal access, or a discounted rate of ₹1000/- for a full year of access.
NBM&CW November 2021
