Highway projects mostly at risk in four states
Real Estate

Highway projects mostly at risk in four states

Photo: For representational purpose

Construction of national highways came to a grinding halt with the nationwide lockdown imposed on March 25, 2020, to fight the COVID-19 pandemic. However, to the relief of developers, the government allowed resumption of construction  from April 20, subject to clearances from district administrations.

But activity remains stalled due to severe shortage of labour and raw material, and difficulty in securing requisite clearances.

What’s more, the Centre has divided districts into red, orange and green zones based on the extent of contagion. Only insitu construction is allowed in red zones until the next announcement.

As per a press note by CRISIL Research, the firm’s analysis of over 270 under-construction national highways indicates the top 10 states account for 80 per cent of the projects.

The zones of maximum risk

Projects are most at risk in four of these states – Maharashtra, Uttar Pradesh, Tamil Nadu and Andhra Pradesh – that account for over a third of the projects.

In Maharashtra, which has 11 per cent of the national highway projects, as much as 55 per cent of it is in red zones.

In Uttar Pradesh, which has the lion’s share of projects under construction at 15 per cent, a third is in the red zones.

Projects in Tamil Nadu and Andhra Pradesh, each with over 35 per cent projects in red zones, are also at risk.

In the milieu, for developers, containment of the pandemic and lifting of the extended lockdown are the key monitorables for a return to normalcy.

About a fifth of under-construction NHAI projects are in the red zones of the top 10 states

Those in Maharashtra, Uttar Pradesh, Gujarat, Tamil Nadu and Andhra Pradesh are at higher risk


Photo: For representational purpose Construction of national highways came to a grinding halt with the nationwide lockdown imposed on March 25, 2020, to fight the COVID-19 pandemic. However, to the relief of developers, the government allowed resumption of construction  from April 20, subject to clearances from district administrations. But activity remains stalled due to severe shortage of labour and raw material, and difficulty in securing requisite clearances. What’s more, the Centre has divided districts into red, orange and green zones based on the extent of contagion. Only insitu construction is allowed in red zones until the next announcement. As per a press note by CRISIL Research, the firm’s analysis of over 270 under-construction national highways indicates the top 10 states account for 80 per cent of the projects. The zones of maximum risk Projects are most at risk in four of these states – Maharashtra, Uttar Pradesh, Tamil Nadu and Andhra Pradesh – that account for over a third of the projects. In Maharashtra, which has 11 per cent of the national highway projects, as much as 55 per cent of it is in red zones. In Uttar Pradesh, which has the lion’s share of projects under construction at 15 per cent, a third is in the red zones. Projects in Tamil Nadu and Andhra Pradesh, each with over 35 per cent projects in red zones, are also at risk. In the milieu, for developers, containment of the pandemic and lifting of the extended lockdown are the key monitorables for a return to normalcy. About a fifth of under-construction NHAI projects are in the red zones of the top 10 states Those in Maharashtra, Uttar Pradesh, Gujarat, Tamil Nadu and Andhra Pradesh are at higher risk

Next Story
Real Estate

Capacit’e Infraprojects Wins Rs 6.21 billion order from Saifee Burhani Upliftment Trust

Capacit’e Infraprojects has secured a Letter of Intent (LOI) worth Rs 6.21 billion (excluding GST) from Saifee Burhani Upliftment Trust (SBUT) for the execution of core and shell works, finishing, MEPF services, and other associated components of the redevelopment project—Sector 07 of the Saifee Burhani Upliftment Project—located at Ward ‘C’, Bhendi Bazaar, Mumbai. This is the third repeat order from SBUT to Capacit’e Infraprojects, underscoring the trust and satisfaction of a long-standing client in the company’s project delivery capabilities. Commenting on the develop..

Next Story
Resources

K Raheja Corp's Volunteering Drive Brings Back-to-School Cheer for Underprivileged Kids

Real estate major K Raheja Corp concluded its latest community initiative under the ‘Time Off for Volunteering’ programme, titled Paint a Pair, Show You Care. Held in association with NGO ConnectFor, the campaign was part of a larger 'Back to School' drive aimed at supporting underprivileged students from the Jhanvi Charitable Trust. More than 45 employees from across group companies—Mindspace Business Parks, Chalet Hotels Ltd., K Raheja Corp Homes, and Inorbit Malls—came together to hand-paint over 60 pairs of canvas shoes for children preparing to return to school. Volunteers al..

Next Story
Infrastructure Urban

CCI Worldwide Logistics Launches ‘Trans Africa’ Freight Service

CCI Worldwide Logistics, the international freight forwarding arm of the CCI Group, has launched ‘Trans Africa’—a technology-led logistics platform aimed at streamlining cross-border trade across Africa. The company is investing Rs 1.06 billion in the initiative, targeting an annual freight volume of 5,000 TEUs by air and sea, with an estimated 15 per cent return on investment. The service is being rolled out in key markets such as Nigeria, Kenya, South Africa, Ghana, and Egypt, with planned expansion into Francophone West Africa, Central Africa, and landlocked nations including Uga..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?