Close
My Account
Log Out
User Name
Password
Forgot Password?
-Landing Page- Home
Why I am not able to Login? You have subscription for unlimited usage for the services. For this, you need to login from Login Manager. You will find an icon (similar to Infraline logo) on your desktop. If you don't have Login Manager, kindly find instructions on 'Subscription > Paid Subscription link' on FAQ page (Click Here).
Published:August 16, 2019 4:34 PM
The Indian Road sector has shown signs of revival over FY2015-FY2018, the government has aptly focused on addressing and resolving the bottlenecks for the road sector, with measures like rescheduling of premium, providing exits to concessionaires, restructuring of loans, providing more avenues of financing, improving liquidity, and change in model concession agreements and faster clearances of projects. Development of road can be bifurcated under various phases like, National Highways Development Project (NHDP), Special Accelerated Road Development Programme specifically for the North East Region (SARDP-NE) including Arunachal Pradesh Package of Roads, Development of Roads in the Left Wing Extremism affected parts, Externally Aided Projects (EAP) etc. There are projects worth around Rs 70,000 crore that are yet to be awarded. Investment Opportunities in the Sector Massive Pipeline Of Opportunities Over Next Five Years (NHAI) Bharatmala NHDP Others Length (in kms) 18763 4667 6570 Investment 3 tn 770 bn 1.1 tn Time Period Award Over 5Yrs Award Over 15-18 Months Award Over 5Yrs NHAI Projects Worth 30,000km (Rs 5tn) Likely To Be Awarded Over FY20E-FY24E* States yearly road construction spending touches INR 1,00,000cr Currently, the combined spending of states on roads has reached INR 1,00,000cr as against INR 35,000 cr in FY13. Our analysis suggests that major states like Maharashtra, UP, MP, Telangana, and Karnataka would spend INR 5,00,000cr over the next few years on new road construction and upgrades of existing roads. States like Maharaashtra and MP have already started converting their state highways from bitumen to concrete. Major State's Spending Plans for Roads States INR Cr Maharshtra 108800 MP 150000 UP 149000 Andhra Pradesh 55300 Telangana 42400 Karnataka 6700 Total Expected Spending 512200 Source: Infraline Analysis, MoRTH Significant policy amendments to revive growth Several policies were amended to remove bottlenecks and achieve MORTH ambitious target of doubling yearly construction. Key initiatives Amendment to the Model Concession Agreement (MCA) Increased land acquisition prices Fast-track judgments related to arbitration and early disbursement of 75% of the amount Making exit options available to developers after two years of project operation Correctly worked out utility estimates is to be obtained at the earliest after the alignment finalization and shall form part of appraisal proposal. The procedure of project appraisal should begin at the earliest on receipt of the Final Detailed Project Report (DPR) and Technical schedules. Regular review at various levels, proposed exit for Equity Investors Securitization of road sector loans Rationalize compensation for delays attributed to authority Road Ahead District and Rural roads shares around 95% of the total length. Here state highways cover close to 3% of the road length while the remaining 2% share contributed by National Highways. Recently Asian Development Bank (ADB) has approved a USD 200 million loan for improving road infrastructure in 34 districts of Maharashtra where rural road will be upgraded to all weather connectivity road which will help to boost connectivity between local roads to economic centers. This is a big number when it comes to passenger traffic uses of road transport which is nearly 90% of total traffic, for goods transport this number is 64.5%. Road transportation has steadily increased over the past many years with the improvement in connectivity between cities, towns and villages in the country. India should follow systematic approach towards highway development with the tiered approach like China which enabled it to develop fast paced road network. There should be different departments for planning, executing and monitoring of road sector, so the sector will be able to attract more investment and funding in near future.
The Indian Road sector has shown signs of revival over FY2015-FY2018, the government has aptly focused on addressing and resolving the bottlenecks for the road sector, with measures like rescheduling of premium, providing exits to concessionaires, restructuring of loans, providing more avenues of financing, improving liquidity, and change in model concession agreements and faster clearances of projects.
Related News
add comments
Name*
Email*
Your Comments