Impact of Central Road Fund provision

01 Mar 2019 Editorial Team

There have been ongoing speculations that amendment in the Central Road Fund (CRF) provisions as proposed in the recent Budget may hit NHAI significantly. “Partly yes,” says Devayan Dey, Director-Capital Projects and Infrastructure, PWC, as non-discretionary allocations from CRF can now be at the discretion of the Ministry of Finance. “Also, partly no,” he adds, because when patterns are looked at retrospectively, it appears that this was being planned for quite some time.

Within budgetary allocations, the cess component had reduced to a third from about Rs 60 billion in FY13 to about Rs 23 billion in FY17. However, the net allocation to NHAI had increased 22 times from ~ Rs 17 billion in FY13 to about ~ Rs 370 billion in FY19 (revised estimates).

The Ministry of Finance seems to be taking due cognisance of the requirement. However, Dey highlights a concern: A majority of the funding source (60 per cent in FY17) still remains through bonds. Rising coupon or principal obligations along with growing annuity commitments can have an impact on financial sustainability in future years.

A back-of-the-envelope calculation indicates that about Rs 2 trillion will be needed to construct 40 km a day on EPC or item rate (assuming four lane on an average with land and other ancillary costs). “Fund availability with NHAI certainly makes it clear that if projects are constructed strictly on EPC or Item Rate mode, the target may not be achievable practically,” says Dey. “The HAM projects awarded in the past two years may provide a push in the short term (without requiring complete capital investment).”

That said, Dey throws up some questions to ponder upon: Is the figure of 40 km a day still relevant today? With the push to dedicated freight corridors, inland water transport, airline routes, and each being strategised to take a fair share of freight and passenger transport, are we not duplicating investments? Do we still need extensive capacity augmentation or is it now time to focus on maintenance and asset management instead?

SHRIYAL SETHUMADHAVAN

There have been ongoing speculations that amendment in the Central Road Fund (CRF) provisions as proposed in the recent Budget may hit NHAI significantly. “Partly yes,” says Devayan Dey, Director-Capital Projects and Infrastructure, PWC, as non-discretionary allocations from CRF can now be at the discretion of the Ministry of Finance. “Also, partly no,” he adds, because when patterns are looked at retrospectively, it appears that this was being planned for quite some time. Within budgetary allocations, the cess component had reduced to a third from about Rs 60 billion in FY13 to about Rs 23 billion in FY17. However, the net allocation to NHAI had increased 22 times from ~ Rs 17 billion in FY13 to about ~ Rs 370 billion in FY19 (revised estimates). The Ministry of Finance seems to be taking due cognisance of the requirement. However, Dey highlights a concern: A majority of the funding source (60 per cent in FY17) still remains through bonds. Rising coupon or principal obligations along with growing annuity commitments can have an impact on financial sustainability in future years.A back-of-the-envelope calculation indicates that about Rs 2 trillion will be needed to construct 40 km a day on EPC or item rate (assuming four lane on an average with land and other ancillary costs). “Fund availability with NHAI certainly makes it clear that if projects are constructed strictly on EPC or Item Rate mode, the target may not be achievable practically,” says Dey. “The HAM projects awarded in the past two years may provide a push in the short term (without requiring complete capital investment).”That said, Dey throws up some questions to ponder upon: Is the figure of 40 km a day still relevant today? With the push to dedicated freight corridors, inland water transport, airline routes, and each being strategised to take a fair share of freight and passenger transport, are we not duplicating investments? Do we still need extensive capacity augmentation or is it now time to focus on maintenance and asset management instead? SHRIYAL SETHUMADHAVAN

Infrastructure Urban

06 Apr 2026

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Infrastructure Energy

06 Apr 2026

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

Real Estate

06 Apr 2026

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..