Ninety per cent of all awarded Hybrid Annuity Model (HAM) projects worth over Rs. 1 lakh crore have achieved debt funding.
The funding puts to rest apprehensions of bidding intensity in HAM projects offered by the National Highways Authority of India (NHAI) and consequent fear that many of these projects will not achieve debt tie-up, according to Crisil.
An analysis shows that a moderation in the pace of highway projects awarded in fiscal 2019 allowed developers to arrange funding and focus on execution. Less than 3,000 km of projects were bid out in fiscal 2019 compared with an all-time high of 7,400 km in fiscal 2018.
