NHAI project awards remain sluggish in February

NHAI project awards remain sluggish in February

Project awards by the National Highways Authority of India (NHAI) remained sluggish in February, with the authority issuing letters of award (LoAs) for two projects measuring around 90 km, brokerage firm Edelweiss said in a report Thursday.

“Year-to-date (YTD) FY22 award stands at 2,988 km, spanning 104 projects. Post H1 FY22, awarding has slowed with only around 1,035 km awarded since September 2021. The pace of award needs to pick up substantially in March 2022 to match FY21’s around 4,800 km project awarded figure,” the brokerage firm said.

Project awards have been robust historically in the last quarters, and particularly in the last month of the fiscal provides some hope on this front, it said.
In the first quarter of the current fiscal, NHAI awarded 416 km highway project length. The award figure went up to 1,536 km in Q2 FY22, but awards fell to 726 km in Q3 FY22. A total of 309 km highway length was awarded in the January-February this fiscal.

“By length of projects awarded till date, around 43% have been on the engineering, procurement and construction (EPC) mode, while the rest were hybrid annuity model (HAM) projects,” it said.

Check the source here –Source, Financial Express.