Nhai Projects

Road developers' debt to spike, revenue growth to remain high: Report

Sizeable equity commitments in under-construction projects and rising working capital needs will increase the debt burden of road developers but revenue growth is set to remain high, driven by strong contract awards and execution in the next fiscal, according to a report. Besides, a high budgetary allocation to the sector will also help road developers, it added. With the prevailing low leverage levels, developers have the headroom to borrow more to fund new projects, which will keep their credit risk profiles stable, said a Crisil report, which also notes that asset monetisation will be crucial to rein in debt. The report is based on the analysis of 18 engineering, procurement and construction (EPC) players, constituting 70 per cent of the sectoral revenue. According to Mohit Makhija, a senior director at the agency, total equity commitment towards the under-construction public-private partnership (PPP) projects is estimated at over Rs 21,000 crore by fiscal 2025. The working cap

Govt working to make India a global automobile manufacturing hub: Gadkari

The government is working towards making India a global automobile manufacturing hub and the domestic industry is expected to be worth Rs 15 lakh crore in the near term, Union Minister Nitin Gadkari said on Tuesday. Virtually inaugurating Tata Motor's vehicle scrapping facility in Jaipur, Gadkari said the automobile sector currently contributes to 7.1 per cent of the nation's GDP with the industry size at around Rs 7.8 lakh crore. "The auto sector gives direct and indirect employment to around 4 crore people and this number is expected to grow to 5 crore by 2025. I am working with a target to make India number one global automobile manufacturing hub and to take its size to Rs 15 lakh crore in the near future," he noted. Gadkari noted that the scrappage policy enables removal of older and unfit vehicles and introduction of new lesser polluting vehicles in a phased manner. "It is estimated that the automotive demand generated by the scrapping policy will lead to additional GST revenu

NHAI prohibits entry of slow moving vehicles on Delhi-Mumbai Expressway

Two-wheelers, including motorcycles and scooters, three-wheelers, non-motorised vehicles, and tractors with or without trailers have been barred from entry

Highway construction slows down, one-fourth target achieved till September

The Covid-19 pandemic and an unusually long rainy season have kept the authorities from reaching the annual highway construction target of 12,000 km

PNC Infratech bags Rs 1,458 crore order from NHAI; stock climbs 6%

The 1,458 crore Uttar Pradesh highway construction project is around 79 kilometers in length and is estimated to be constructed in 24 months

NHAI extended undue benefit to concessionaires, says CAG report

In its compliance audit report on 'Rationalisation/Deferment of Premium in BOT Projects in NHAI', the CAG noted that the National Highways Authority of India (NHAI) extended undue benefitS.

CBI raids multiple locations across states in NHAI corruption matter

The CBI on Monday conducted search operations at multiple locations in Shillong, Guwahati, Gurugram and Bengaluru in connection with alleged irregularities in a National Highway road project in Assam

Top headlines: LIC IPO, govt's NHAI success, Covid mortality, and more

Business Standard brings you the top headlines on Monday

NHAI awarded 6,306 km of highways projects in FY22; built 4,325 km

The NHAI awarded projects for a total length of 6,306 kilometres in the last financial year, while the agency constructed 4,325 kilometres of highways, an official statement said on Friday

All efforts being made to complete Delhi-Mumbai Expressway: Gadkari

Road Transport and Highways Minister Nitin Gadkari on Monday said all efforts are being made to complete the Delhi-Mumbai Expressway project expeditiously. In a written reply to a question in the Rajya Sabha, Gadkari said, out of total length of the project, 350 km has already been constructed and works for construction of 825 km is in progress. Gadkari said bids for remaining 163 kms length have been received/ invited and these balance works are likely to be awarded in the current financial year. "Out of the total length of Delhi-Mumbai Expressway, 350 km has already been constructed and works for construction of 825 km is in progress," he said. The target date for completion of the complete corridor of Delhi-Mumbai Expressway is January 2023. "In ongoing packages, there are certain slippages on account of the ongoing COVID pandemic. All efforts are being made to complete the project expeditiously," Gadkari noted. Replying to a separate question, he said at present, implementati

India needs a new Highway Services Authority

Moving on to technology, the new leap of faith is that toll collections are poised to shift to a GPS-based system

NHAI cancels fourth TOT bundle; invites bids for fifth set of projects

The govt had to earlier cancel the second package of TOT because of tepid response while the third package ran into funding troubles for the Singapore-based operator Cube Highways

In a first, NHAI to start ranking national highways for quality of service

Highways will be assessed on the basis of three criteria; highway efficiency, highway safety and user services

NHAI's Covid force majeure fraught with loopholes, say contractors

Encashment of bank guarantees, non-payment of maintenance costs and lower estimation of revenue and expenditure are some issues raised by road developers

Indecisive officials dealing with highway projects to face action: Gadkari

The Minister said the NHAI has resumed 95 per cent of work on war-footing now with permission to start construction activities while adhering to guidelines.

Lockdown 2.0: Our targets for project award won't decline, says Gadkari

In an interview to Megha Manchanda, Union Road Transport and Highways Minister Nitin Gadkari says he is optimistic about the sector meeting its project execution target in a time-bound manner

New BOT model may still not be preferred mode for highways: Experts

The NHAI has introduced 'harmonious exit' clause in the new concession pacts for the BOT projects

Lenders can now transfer stuck BOT projects to other developers

This move will draw a fine line of functional balance of public-private partnership for development of highway infrastructure in the country

Steps being taken to complete Rs 5.72 trn highway projects on time: Gadkari

He said that currently, 1,407 projects involving 50,016 km of national highways was underway worth Rs 5.72 lakh crore

NHAI to issue land bonds for acquisition from states, other stakeholders

New mechanism will postpone upfront payment