NHAI awarded highest length of projects during FY20-21 against same period in past three years

Notwithstanding the challenges from the outbreak of COVID-19, the National Highways Authority of India (NHAI) has awarded the highest length of projects during FY2020-21 to date compared to the projects awarded during the same period in the past three years. During April to August 2020, NHAI awarded 26 projects of 744 km length compared to 676 km in FY2019-20, 368 km in FY2018-19 and 504 km in FY2017-18. The capital cost of these 26 projects is over Rs.310 billion, which includes cost of civil construction, land acquisition and other pre-construction activities. NHAI has set a target of awarding 4,500 km of highways during the current fiscal and is likely to exceed the same.

Despite the lockdown and prevailing situation, NHAI took various initiatives to instil confidence in the bidders of the sector. To ease the liquidity crunch and ensure cashflow to contractors, NHAI ensured that no payments were delayed owing to closure of office and disbursed Rs.100 billion during the lockdown in March 2020 using digital platforms, according to a release by the authority. In the first quarter of the current fiscal, NHAI disbursed over Rs.150 billion to vendors. Additionally, steps such as monthly payments to the contractors were taken. Such moderations saw encouraged participation from bidders, resulting in a spiralling effect on the growth of the roads sector.

With the increase in awards and expanding highway construction, NHAI has made a good beginning in a year marred by the global outbreak of the pandemic. It remains committed to develop national highway infrastructure at a rapid pace and envisions the provision of a safe, smooth and seamless travel experience on national highways, stated the release. The authority also aims to construct 23 new highways by 2025.