Slowdown in roads sector to affect Bharatmala project with 55% cost overruns: India Ratings
The current economic slowdown has shaken lose yet another domino as credit rating agencies downgrade their outlook on the sector. The biggest loser here, however, will be the government and its ambitious road construction programme under Bharatmala Pariyojana, which is expected to suffer 55% cost overruns and at least a two-year delay in its timeline for awarding new projects.
On Monday, India Ratings and Research revised its roads sector outlook to stable-to-negative from stable, while ICRA warned that traffic growth would turn negative in the second half of this fiscal, dragging down toll revenues with it.
