Ordering in the roads sector is likely to pick up from FY20 onwards, after a lull in the current year. In a report on roads, JM Financial Services Ltd highlights how orders have typically picked up after elections. During 2009 and 2014 elections, ordering in roads picked up after the new government assumed office, irrespective of the ruling party.
This time around, there is greater optimism because about 26,000km of roads have been earmarked for ordering over the next two-three years, under the Bharatmala Pariyojana. Within this, the draft project report is ready for about 17,000km. In fact, soon after the plan was announced, road orders, mainly from National Highways Authority India (NHAI), had gained traction, touching 7,400km in FY18.
