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

Infrastructure Urban

10 Mar 2026

ABB to Invest Rs 6.25 Billion to Expand India Manufacturing

ABB recently announced plans to invest approximately Rs 6.25 billion ($75 million) in India during 2026 to expand its manufacturing footprint and research and development capabilities. The investment follows more than $35 million spent in 2025 and reflects the company’s continued focus on strengthening its ‘local-for-local’ strategy in the country.The investment will support ABB’s Electrification, Motion and Automation businesses and expand manufacturing capacity for infrastructure sectors such as renewable energy, metro rail, data centres and industrial applications. Approximately 300..

Six WOLFF Cranes Handle 60,000 m³ Concrete for German Hospital

Six WOLFF tower cranes are playing a key role in constructing a new hospital complex in Memmingen, Germany, supporting large-scale material handling for the project. The facility is being built on a 7.7-hectare site and will feature six floors, around 480 beds and a gross floor area exceeding 75,000 sq m.Building shell works began recently in February 2025. One WOLFF 6531.12 Cross crane supported early site preparation before being dismantled in autumn 2025, while five remaining cranes continue operations. Over an average deployment period of 16 months, the cranes are expected to move approxim..

REC Funds Rs 115.6 Million CSR Support for Bihar Eye Hospital

REC recently committed Rs 115.6 million under its Corporate Social Responsibility (CSR) programme for the procurement of clinical and non-clinical equipment at Sankara Eye Hospital in Saharsa, Bihar. The initiative aims to strengthen healthcare infrastructure and improve access to specialised eye care services in the region.A Memorandum of Agreement (MoA) was recently signed between Pradeep Fellows, Executive Director (CSR), REC Limited, and Wg Cdr V. Shankar (Retd), Trustee and Executive Director of Sankara Eye Hospital, at the REC office in the SCOPE Complex, New Delhi.The support is expecte..