Modi govt’s road dreams may take a backseat on cash flow and debt issues
If the recent trends of cashflow challenges and weak orders are anything to go by, Prime Minister Narendra Modi’s government’s thrust on road and highway projects will continue on a muted footing until the 2024 general elections.
A report by Nomura Research on Monday showed that the pace of highway awarding by state and central governments has been weak in the last financial year and also in April this calendar year. It may continue to be so in the ongoing fiscal, the foreign brokerage said.
The tenders awarded by the Transport Ministry (MoRTH) in FY23 fell to 12,376 km from 12,731 km in FY22, which however was higher than in FY20 and FY21.
