comScore
Active Stocks
Tue Dec 05 2023 12:13:23
  1. Tata Steel share price
  2. 131.15 0.15%
  1. State Bank Of India share price
  2. 606.75 2.03%
  1. ICICI Bank share price
  2. 1,008.55 1.81%
  1. Power Grid Corporation Of India share price
  2. 214.85 0.92%
  1. NTPC share price
  2. 275.05 0.09%
Business News/ Home-page / Highway construction rate to peak at 30-32 km/day in FY’19: Report
Back Back

Highway construction rate to peak at 30-32 km/day in FY’19: Report

Pace of construction is expected to decline in 2019-20 on account of funding shortage for new projects

NHAI would be able to collect toll on hybrid-annuity model (HAM) projects achieving completion by 2018-19. Photo: PTIPremium
NHAI would be able to collect toll on hybrid-annuity model (HAM) projects achieving completion by 2018-19. Photo: PTI

New Delhi: Highway construction will increase up to 30-32 km per day in the current fiscal, as execution of projects is likely to pick up in the remaining months, CARE Ratings said Thursday. However, it said overall pace of construction is expected to decline in 2019-20 on account of funding shortage for new projects.

“Despite slowdown in construction rate to 23 km/day for the first seven months of the year due to monsoon and seasonal disruption, we expect execution to pick up over the next four months, which would push overall road construction rate to an all-time high in 2018-19," CARE Ratings said in a statement.

The current fiscal ends on March 31, 2019.

Although, NHAI would be able to collect toll on hybrid-annuity model (HAM) projects achieving completion by 2018-19, there would be cash flow mismatch for the company during ramp-up of these projects, the rating agency said.

It said factors like delay in obtaining pre-requisite land for new projects under engineering, procurement and construction and HAM, and achieving financial closure due to risk aversion of public sector banks would continue to negatively impact the overall development in the sector.

This story has been published from a wire agency feed without modifications to the text.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Catch all the Elections News, Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 06 Dec 2018, 07:50 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App