NHAI awarded highest length of road projects worth Rs 31,000 cr during FY2020-21
New Delhi: Despite challenges posed by the outbreak of the novel Coronavirus (COVID-19) pandemic, the National Highways Authority of India (NHAI) has awarded the highest length of projects during FY2020-21 till date as compared to the projects awarded during the same period in the last three years. As per NHAI, in the April-August period, it has awarded 26 projects of 744-km length as compared to 676 km in the corresponding period of FY 2019-20, 368 km in FY-2018-19 and 504 km in FY 2017-18. The capital cost of these 26 projects is over Rs 31,000 crore, which includes the cost of civil construction, land acquisition, and other pre-construction activities.
NHAI has set a target of awarding 4,500 km of highway during the current financial year and is likely to exceed the same, the company said in an official statement on Monday.
Despite lockdown and prevailing situation, NHAI took various initiatives to instil confidence amidst the bidders in the sector. To ease the liquidity crunch and ensure cash flow to contractors, NHAI ensured that no payments were delayed due to closure of office and disbursed Rs 10,000 crore during the lockdown in March using digital platforms. In the first quarter of the current financial year, NHAI disbursed more than Rs 15,000 crore to vendors. Additionally, steps such as monthly payments to contractors were undertaken.
Such moderations saw encouraging participation from bidders, resulting in a spiralling effect on the growth of the road sector.
"With increase in awards and expanding highway construction, NHAI has got a good beginning for a year marred by the global outbreak of the pandemic. NHAI is committed to developing the National Highways Infrastructure at a rapid pace and envisions providing safe, smooth, and seamless travel experience on the national highways," the statement said.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)
