MoRTH’s Stricter Rules Expected to Ease Road Project Pressure: Icra

20 May 2025 CW Team

Rating agency Icra anticipates that the Ministry of Road Transport & Highways (MoRTH) will tighten bidding norms by introducing a requirement for additional performance security (APS), aiming to reduce competitive pressure in Central Government road projects.

Earlier, the relaxed bidding guidelines had led to fierce competition in central government road tenders, with many contracts awarded at steep discounts—around a median of 25 per cent between January 2024 and March 2025. However, the new policy could place financial stress on small and mid-sized contractors, especially those with limited bank guarantee (BG) capacities.

Back in August 2022, the Ministry had mandated APS for projects awarded at significantly lower than the base price, but this was capped at 3 per cent of the total project cost. According to the latest circular, this 3 per cent cap has now been removed.

Ashish Modani, Group Head, Corporate Ratings, Icra, said, “The hike in performance security requirement is a positive step towards execution discipline, which will deter speculative bidding and promote realistic pricing. The policy, though, in the near term, is expected to put some strain on the credit profiles of small and mid-sized contractors, particularly those with limited-sized BG limits."

Modani further explained that the need for cash margins to secure additional BGs will increase working capital demands, which may affect bidding capacity, revenue growth, and coverage ratios due to higher financing costs. However, he noted that in the medium term, the policy will encourage participation from serious, well-capitalised bidders, leading to improved performance and better quality in road construction.

News source: Business World

Real Estate

04 Aug 2026

LML Realty Launches Cinema Campaign on Industrial Vision

LML Realty has launched a cinema advertising campaign in partnership with PVR INOX across 81 screens in Gurugram and Faridabad, showcasing the brand’s transformation from a mobility icon to an industrial infrastructure developer.The campaign features a cinematic brand film tracing LML’s journey since 1972, beginning with its iconic scooters and highlighting its evolution into creating infrastructure solutions that support India’s manufacturing growth.The film focuses on LML Industrial Park at Jhirka Valley, the company’s flagship industrial development approved under the Haryana Govern..

IIM Ahmedabad Publishes Case Study on HoABL’s Business Model

The Indian Institute of Management Ahmedabad (IIMA) has published a case study on The House of Abhinandan Lodha (HoABL), examining the company’s digital-first consumer journey and business model that created India’s branded land category.Titled “HoABL: Ready for Scaling Up”, the case study has been published by the IIMA Case Centre and co-authored by Sourav Borah, Associate Professor of Marketing at IIMA, and Dr Aparna Kansal of IMT Ghaziabad. IIMA case studies are used across management and executive education programmes to help students and business leaders analyse strategic decision..

Advait Energy and MEIL Partner for Energy Transition Projects

Advait Energy Transitions Limited (AETL) and Manipal Energy Infratech Limited (MEIL), a company of The Manipal Group, have entered into a strategic Memorandum of Understanding (MoU) to collaborate on power and energy transition opportunities across India and international markets.The partnership aims to combine AETL’s expertise in innovative energy technologies and manufacturing with MEIL’s EPC execution capabilities and project management experience. The collaboration will focus on opportunities across Power Transmission & Distribution, Renewable Energy, Battery Energy Storage Systems..