NHAI to focus on execution, not on awarding new road projects: CRISIL
State-run National Highways Authority of India (NHAI) is expected to shift its focus to execution instead of awarding new road projects going forward due to the burden of soaring land acquisition costs and rising debt on its books, the report said.
The rating agency Crisil expects the awarding of all hybrid annuity model (HAM), EPC and build-operate-transfer (BOT) road projects to moderate to 12,000-13,000 km over fiscals 2020 to 2022 compared with 14,000 km over fiscals 2017 to 2019.
It may be noted that in September this year, the Prime Minister’s Office (PMO) wrote a letter to the NHAI outlining suggestions for reorganising its portfolio, check on the commercial viability of projects and monetise assets.
