The National Highways Authority of India (NHAI) has set the target to match the highway project awards in the first nine months of the current fiscal in the January-March quarter.
The authority awarded 2,423 km national highways till December of the current fiscal. In the whole of 2019-20 fiscal, NHAI had awarded 3,211 km national highways, up from 2,222 km in 2018-19.
A senior NHAI official said total highway project awards in the current fiscal could be in the range of 4,800-5,200 km, higher than the 4,500-km orignal target the authority had set for itself for the current fiscal.
Alok Deora, lead analyst, Yes Securities, said, "The current huge tender pipeline of around Rs 72,000 crore indicates towards strong awarding likely during the Q4FY21. Also, considering NHAI's awarding trend (Q4 witnesses massive awarding), we expect major traction in awarding during Q4FY21."
Of course, all tender pipeline does not turn into actual awards, but Deora is optimistic that a significant part of the 3,500-km pipeline might translate into actual awards.
Talking to media, NHAI's chairman had, in last month, said of the total projects around 60% were awarded through the hybrid annuity model (HAM) and the remaining through the engineering procurement and construction (EPC) model, in which the government bears all expenses.
Deora said the tender pipeline is dominated by HAM with a 55% share followed by 38% through the EPC model. Two projects are planned to be awarded through the revamped BOT-Toll model.
Sources said till December, a total of 7,203 km highway length has been awarded by all implementing agencies that include NHAI, NHIDCL and the ministry of road transport and highways (MoRTH). Only 3,434 km of highway project was awarded during the April-December period of the last fiscal.
(With inputs from agencies)