Bharatmala road projects costs surge with input prices

21 Nov 2023 CW Team

Icra reported that the cost of road projects under the Bharatmala Pariyojana (BMP) initiative has risen to Rs 10.64 trillion, exceeding the original estimate by more than double. The costs now average Rs 310.6 million per km, primarily attributed to an increase in input prices and land acquisition costs.

The approval of the Union cabinet is awaited for the revised expense plan for Bharatmala Phase-I. However, there has been a significant slowdown in the awarding of new projects, resulting in a 48% year-over-year (YoY) decrease in the volume of project awards. In the first seven months of FY24, only 2,595 km were granted compared to the 5,007 km awarded in the same period last year.

Icra estimates that awarding activity is expected to decline more than 30% YoY in FY24.

Ashish Modani, Vice President & Co-group Head, Corporate Ratings at Icra, stated, "The burden on the Ministry of Roads and Transport and Highways (MoRTH) in case of BOT (Toll) projects is much lower, given the substantial cost escalation in the BMP and consequent increase in funding requirement. The MoRTH has thus shifted its focus onto BOT (Toll) projects."

For engineering, procurement, and construction (EPC) and hybrid annuity model (HAM) projects, the average number of bidders was substantially higher at 15 and eight, respectively, compared to less than five for BOT projects. BOT projects demand greater initial equity and carry more market risk.

Real Estate

17 Sep 2025

Indian REITs Offer 6-7.5 per cent Yield, Surpassing Many Global Markets

Indian Real Estate Investment Trusts (REITs) are delivering average yields of 6–7.5 per cent for unitholders, outperforming many mature markets, including the US, according to a report by Credai and Anarock.Credai, the apex body of Indian real estate developers, and property consultant Anarock released the report Indian REITs – A Gateway to Institutional Real Estate at an event in India.Currently, India has five listed REITs – Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust. Nexus Select Trust pr..

Insolation Energy Wins 226 MW Solar Projects Under PM-KUSUM

Insolation Energy on Monday announced securing multiple solar projects totalling 226.45 MW, with an investment of Rs 7.5 billion, under the PM-KUSUM scheme. The orders were awarded to its wholly-owned subsidiary, Insolation Green Energy Pvt Ltd, by Jaipur Vidyut Vitran Nigam Limited for 20 sites and Ajmer Vidyut Vitran Nigam Limited for 115 sites, the company informed the exchanges.“The combined SPV solar power plants will total 226.45 MW under PM-KUSUM Component A, with the final levelised tariff at Rs 3.04 per unit for 16 sites, Rs 2.82 per unit for 5 sites, Rs 2.75 per unit for 53 sites, ..

Numaligarh Refinery Awards EPC Contract for Rooftop Solar Projects

State-owned Numaligarh Refinery Ltd. (NRL) has awarded a Letter of Award to Solarium Green Energy Ltd. for the rate contract covering the Engineering, Procurement, and Construction (EPC) of grid-connected rooftop solar PV projects at various locations. The projects fall within the categories of 51–200 kW and 201–1000 kW. Notable projects include a 140 kW rooftop solar plant at NRL Assam, a 760 kW plant at NRL Assam, and a 280 kW plant at NRL West Bengal.The supply order covers ex-manufacturing works and the dispatch price for plant and equipment for the 140 kW, 760 kW, and 280 kW rooftop s..