The Narendra Modi-led National Democratic Alliance (NDA) government has awarded road contracts at a ‘breakneck pace’ in the 2017-18 financial year.
According to IIFL Wealth Management Ltd, orders from the National Highway Authority of India (NHAI), headed by Union Minister Nitin Gadkari, may cross a world record Rs 1 lakh crore, climbing from Rs 60,000 crore a year ago, Bloomberg reported.
“Going by the tender pipeline, the breakneck pace of NHAI order flows is likely to continue in the next financial year,” Alok Deora, a Mumbai-based infrastructure research analyst at IIFL Wealth Management told Bloomberg.
“In the last 5 years, the average length of road projects awarded by the NHAI was 2,860 km with 4,335 km awarded in the last financial year. In comparison, the length of projects awarded in FY 2017-18 is an all-time high and a record achievement by the NHAI since its inception in 1995,” said a statement released by the road authority.
NHAI is at the centre of Prime Minister Narendra Modi’s ambitious “Bharatmala” plan to build 83,677 kilometres of road by 2022 to boost economic growth and employment.
Dilip Buildcon, Sadbhav Engineering Ltd, Ashoka Buildcon Ltd and MEP Infrastructure Developers Ltd are the major beneficiaries of the scheme, the report added.
Achieving the ambitious target could be a major boost for the government, giving it a major achievement to highlight ahead of the Lok Sabha elections next year.
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