NHAI develops 4,788 km highways in FY21 at Rs 1.7 lakh cr
ROADS & HIGHWAYS

NHAI develops 4,788 km highways in FY21 at Rs 1.7 lakh cr

The National Highways Authority of India (NHAI) constructed 4,788 km highways in FY21 at a cost of Rs 1.7 lakh crore, recording a speed of 30.5 km per day.

NHAI has already awarded 13,521 km of the planned 34,800 km in Bharatmala - Phase 1 and has invited bids for another 4,008 km. In FY2022, the NHAI is expected to award new projects worth Rs 2.25 lakh crore.

The construction is expected to progress at a rate of 40 km per day. Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu are among the states where projects will be awarded in the coming months.

Increased construction speed has come at a price. The total cost of Bharatmala has increased by more than 50% from an initial estimate of Rs 5.35 lakh crore due to higher land acquisition costs. The debt of the NHAI is likely to have increased from Rs 2.5 lakh crore in FY20 to Rs 3 lakh crore in FY21.

Once the NHAI's asset monetisation programme kicks in, the situation should improve. Given the current state of easy liquidity, the conditions are ideal for this. Through ToT (toll-operate-transfer) 1 and ToT 3, NHAI has already monetised 1,247 km of assets worth Rs 14,700 crore. It has also completed 160 km of ToT-5 worth Rs 2,200 crore.

It intends to raise between Rs 5,000 and Rs 15,000 crore through three projects in FY22, with the goal of monetising assets worth Rs 75,000 crore through ToT by FY2024.

Given the recovery in the economy and improved toll collection since the ease of lockdown, assets are likely to fetch attractive prices from bidders.

Since the implementation of FASTag, toll collection has improved due to increased transparency. Electronic toll collection is available at 780 toll plazas, with FASTag penetration at around 96 % across the country.

Image Source


Also read: Around 2,285 km of highway completed in Q1 FY22: Nitin Gadkari

Also read: Highway construction in India increases 25% in Q1 FY22

The National Highways Authority of India (NHAI) constructed 4,788 km highways in FY21 at a cost of Rs 1.7 lakh crore, recording a speed of 30.5 km per day. NHAI has already awarded 13,521 km of the planned 34,800 km in Bharatmala - Phase 1 and has invited bids for another 4,008 km. In FY2022, the NHAI is expected to award new projects worth Rs 2.25 lakh crore. The construction is expected to progress at a rate of 40 km per day. Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu are among the states where projects will be awarded in the coming months. Increased construction speed has come at a price. The total cost of Bharatmala has increased by more than 50% from an initial estimate of Rs 5.35 lakh crore due to higher land acquisition costs. The debt of the NHAI is likely to have increased from Rs 2.5 lakh crore in FY20 to Rs 3 lakh crore in FY21. Once the NHAI's asset monetisation programme kicks in, the situation should improve. Given the current state of easy liquidity, the conditions are ideal for this. Through ToT (toll-operate-transfer) 1 and ToT 3, NHAI has already monetised 1,247 km of assets worth Rs 14,700 crore. It has also completed 160 km of ToT-5 worth Rs 2,200 crore. It intends to raise between Rs 5,000 and Rs 15,000 crore through three projects in FY22, with the goal of monetising assets worth Rs 75,000 crore through ToT by FY2024. Given the recovery in the economy and improved toll collection since the ease of lockdown, assets are likely to fetch attractive prices from bidders. Since the implementation of FASTag, toll collection has improved due to increased transparency. Electronic toll collection is available at 780 toll plazas, with FASTag penetration at around 96 % across the country. Image Source Also read: Around 2,285 km of highway completed in Q1 FY22: Nitin Gadkari Also read: Highway construction in India increases 25% in Q1 FY22

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