E-Paper
Highest highway length in 3 years awarded during Covid-19 pandemic: NHAI
According to credit ratings agency ICRA, commercial vehicle movement on national highways recovered to near 90% of pre-Covid-19 levels in July. However, the movement in passenger vehicles is yet to recover fully.
The National Highways Authority of India (NHAI) on Monday said it has awarded the highest length of projects during the months of April to August of financial year 2020-21, as compared to the projects awarded during the same period in the last three years.
During April to August 2020, NHAI awarded 26 projects of 744 km length at a cost of over Rs 31,000 crore as compared to 676 km in FY 2019-20, 368 km in FY-2018-19 and 504 km in FY 2017-18.
“Despite lockdown and the prevailing situation, NHAI took various initiatives to instill confidence in the bidders of the sector. To ease the liquidity crunch and ensure cash flow to the contractors, NHAI ensured that no payments are delayed due to closure of office and disbursed Rs 10,000 crore during lockdown in March 2020 using digital platforms,” NHAI said in a statement.
“In the first quarter of current FY, NHAI disbursed more than Rs 15,000 crore to vendors. Additionally, steps such as monthly payments to the contractors were taken. Such moderations saw an encouraged participation from the bidders resulting in spiraling effect on the growth of the road sector. With the increase in awards and expanding highway construction, NHAI has got a good beginning for a year marred by the global outbreak of the pandemic,” it added.
According to credit ratings agency ICRA, commercial vehicle movement on national highways recovered to near 90% of pre-Covid-19 levels in July. However, the movement in passenger vehicles is yet to recover fully and is still hovering at 60% of their pre-Covid-19 levels, it said in a report last week, adding that if the pace of recovery continues and holds, the year-on-year fall in toll collections can be limited to under 10%.
