NHAI road awards at three-year low in first half of fiscal
ROADS & HIGHWAYS

NHAI road awards at three-year low in first half of fiscal

The National Highways Authority of India (NHAI) could award only 777 km of road projects in the first half of the current financial year (April-September), which is a three-year low, rating agency Crisil said. This is also a 60 per cent drop over the corresponding period last year.

The road building authority has floated tenders worth about 2,200 km so far this fiscal, which is 36 per cent higher than the corresponding first half of the last fiscal.

"Slackened pace of execution, and highly inflated prices of key input materials owing to uncertainties arising out of global geopolitical tensions, have acted as major impediments to contract awarding momentum," Crisil analysts said in a report released last week.

Considering the ramp-up that typically happens in the fourth quarter, awarding in the second half of the financial year is expected to improve substantially. Nonetheless, awarding for the full year is still likely to be moderate.

"We expect 4,800-5,200 km of awards this fiscal, much lower than the 6,306 km awarded last fiscal," the rating agency noted.

Of the 777 km awarded in the first half of this fiscal, hybrid annuity model (HAM) projects had a 51 per cent share, while engineering, procurement and construction (EPC) accounted for the rest.

"Sharp rise in commodity prices and complex project awards in difficult terrains warranted developers to seek a higher premium to maintain their margins," the report said.

See also:
NHAI invites DPR bids for Vizag flyovers
NHIDCL invites bids for upgradation of NH-217 in Meghalaya


The National Highways Authority of India (NHAI) could award only 777 km of road projects in the first half of the current financial year (April-September), which is a three-year low, rating agency Crisil said. This is also a 60 per cent drop over the corresponding period last year. The road building authority has floated tenders worth about 2,200 km so far this fiscal, which is 36 per cent higher than the corresponding first half of the last fiscal. Slackened pace of execution, and highly inflated prices of key input materials owing to uncertainties arising out of global geopolitical tensions, have acted as major impediments to contract awarding momentum, Crisil analysts said in a report released last week. Considering the ramp-up that typically happens in the fourth quarter, awarding in the second half of the financial year is expected to improve substantially. Nonetheless, awarding for the full year is still likely to be moderate. We expect 4,800-5,200 km of awards this fiscal, much lower than the 6,306 km awarded last fiscal, the rating agency noted. Of the 777 km awarded in the first half of this fiscal, hybrid annuity model (HAM) projects had a 51 per cent share, while engineering, procurement and construction (EPC) accounted for the rest. Sharp rise in commodity prices and complex project awards in difficult terrains warranted developers to seek a higher premium to maintain their margins, the report said. See also: NHAI invites DPR bids for Vizag flyoversNHIDCL invites bids for upgradation of NH-217 in Meghalaya

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code