Hybrid annuity projects worth Rs 1 trillion offered by the National Highways Authority of India (NHAI) have achieved debt funding says an analysis by Crisil.
A moderation in the pace of highway projects awarded in fiscal 2019 gave developers the latitude to arrange for funding and focus on execution. Less than 3,000 km of projects were bid out in fiscal 2019
compared with an all-time high 7,400 km in fiscal 2018.
The debt tie-ups have been driven by low risks in HAM, prudent bids, and track record of execution of strong and experienced sponsors.
“There were apprehensions because 8-10 bidders had garnered the lion’s share of HAM projects leading to concentration risk. Besides, at that point in time, 11 public sector banks were placed under the Reserve
