Stringent bidding criteria for HAM projects to impact 25% of road developers: Crisil Ratings

The recent modification in the qualification criteria for national highways development under the hybrid annuity model (HAM) could impact 25% or one in four road developers from bidding in the near term. This would prevent aggressive bidding and result in a balanced distribution of projects across existing and new players,” Crisil Ratings said.

“This and strengthening of the technical qualification criteria should improve bidding discipline and construction quality after a phase of aggressive bidding seen in the past couple of years,” it said on Tuesday based on its analysis of 74 developers, who won over 90% of the HAM projects between fiscal 2022 and 2025.