NHAI to award 6,500 km NH construction contracts this FY

03 Jun 2022 CW Team

Crisil predicted that the National Highways Authority of India (NHAI) awarding might slow down to 5,000 km annually over the current fiscal year (FY) and the next. It is committed to achieving its awarded target of 6,500 km this year.

Chairperson of NHAI, Alka Upadhyaya, said that the authority would also achieve its goal of constructing 5,000 km of national highways (NHs) during the current FY.

According to the Crisil report, NHAI awarding may slow down to 5,000 km annually over the current and the next FY, after a sequential rise from 2,222 km in FY19 to 6,306 km in FY22.

NHAI had awarded projects of 6,306 km in the last FY while constructing 4,325 km of highways. The capital expenditure (capex) by NHAI for highway infrastructure reached Rs 1,68,770 crore during FY22.

Crisil said that a limited rise in budgetary support, with a higher capex for 70% of high-value expressways under construction, could defer NHAI awards under Bharatmala Phase-1 beyond FY24.

About 40% of detailed project reports (DPR) are ready under Bharatmala Phase-1 and are yet to be awarded.

Upadhyaya said that NHAI will be able to award contracts for 30,000-31,000 km by 2025.

Till now, 576 projects of 20,368 km have already been awarded under the programme.

Bharatmala Pariyojana is the largest highway infrastructure programme in India, having a development portfolio of 34,800 km of NH corridors at an investment of Rs 5.35 lakh crore.

NHAI expects to award 60% of its projects under the hybrid annuity model (HAM) and 30% under engineering, procurement and construction (EPC) contracts.

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Also read: NHAI to build 5,795 km National Highways in Aspirational Districts

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