MoRTH to establish credit rating metric for private construction firms

06 Apr 2023 CW Team

Companies that build infrastructure must have a credit rating of "BBB" or above to be eligible to submit a proposal for national highway projects funded by public-private partnerships (PPPs).

Any bidder who wishes to make a bid for the project but does not have such a credit rating must include a "letter of comfort" from their bank or other financial institution.

The Union Road Transport and Highways Ministry has never previously established such a credit rating criterion for private construction companies.

The decision was made in response to concerns that contractors who were awarded projects under the Build Operate and Transfer (BOT-Toll) and Hybrid Annuity Model (HAM) were having trouble securing funding to begin construction, which delayed the project's implementation.

The investment grade rating of "BBB" means that there is little chance of default and that the ability to meet financial obligations is deemed sufficient. However, this capability is more likely to be hampered by unfavourable commercial or economic situations.

Due to financial difficulties faced by several highway builders, some projects have been postponed. The Highways Ministry recently stated in response to a parliamentary query that at least 10 projects were delayed owing to issues with contractors, six of which were related to contractors' financial difficulties.

Also read:
Rs 4.88 billion order bagged by NBCC from MHA to build border road

Infrastructure Transport

08 Oct 2025

Kilambakkam Station, Skywalk Opening Delayed To January 2026

The long-awaited Kilambakkam railway station and pedestrian skywalk connecting it to the Kilambakkam Kalaignar Centenary Bus Terminus (KCBT) will now open only by January 2026, after multiple construction delays by both the Chennai Metropolitan Development Authority (CMDA) and Southern Railway. The postponement has left thousands of commuters struggling with poor connectivity during the ongoing festive season.Located nearly 25 kilometres from Chennai, KCBT serves as a major hub for mofussil and SETC buses heading to districts across Tamil Nadu. In the absence of train connectivity, commuters a..

Railways Clears Rs 1.12 Billion Six-Lane Bridge Near Amaravati

The Ministry of Railways has approved the construction of a six-lane road over bridge (ROB) at the E13 extension road between Mangalagiri and Krishna Canal stations in Andhra Pradesh, at an estimated cost of Rs 1.12 billion. The project, fully funded by the Railways, aims to improve regional connectivity and ease traffic flow towards the Amaravati Capital Region.The proposed bridge will provide a crucial link between National Highway-16 (NH-16) and Amaravati, crossing the busy Chennai–Howrah railway line near Vijayawada. Initially planned as a four-lane structure, the design has been upgrade..

Bombay HC Questions Cuffe Parade Redevelopment On Prime Govt Land

The Bombay High Court (HC) has raised serious concerns over the redevelopment of 33 acres of prime government land in Cuffe Parade, South Mumbai, under the Slum Rehabilitation Authority (SRA) scheme, calling it a potential misuse of public property under the guise of slum rehabilitation.In a strongly worded order issued on 1 October 2025, a division bench of Justices G.S. Kulkarni and Aarti Sathe observed that transferring such valuable land for private development amounted to “removing it from the public pool” and “throwing it open for commercial exploitation” in a city already depriv..