- 27 Jun 2024
- ICICI Securities
NHAI has scaled down the construction target
News: NHAI has scaled down the construction target for FY25 by setting a target of 5000 km of highway construction which is 22% lower than FY24 6,444 km of highways The scaling down of targets can be attributed to the slowdown of awarding and construction of new projects due to the model code of conduct. Meanwhile NHAI has identified highway development through BOT model having lined up ₹2.1 trillion worth of 53 highway projects with a total length of 5214 km, and has implemented a new model concession agreement.
Views: Road awarding will likely grow by 5-8% to 12,500-13,000 km in FY25. The ministry is awaiting the approval of the national master plan for highway construction after which the awarding of projects will pick up. Key players like IRB, Adani, GR Infra and certain road focused PE players could be key bidders in BOT model.
Impact: Neutral