Project cost more than doubled to Rs 10.64 lakh crore under Bharatmala Pariyojana: ICRA
Bharatmala Pariyojana is the largest highway infrastructure programme in India which aims at the development of 34,800 kilometres of national highway corridors at an investment of Rs 5.35 lakh crore.
The project cost under the Bharatmala Pariyojana (BMP) programme has more than doubled to Rs 10.64 lakh crore owing to the steep rise in input costs and an increase in land acquisition costs, rating agency ICRA said on Monday.
Bharatmala Pariyojana is the largest highway infrastructure programme in India which aims at the development of 34,800 kilometres of national highway corridors at an investment of Rs 5.35 lakh crore.
"Pending the cabinet approval for the revised cost of Bharatmala Phase-l, project awarding activity in the recent quarters took a beating, declining by 48 per cent YoY to 2,595 km during 7mFY2024 compared to 5,007 km during 7mFY2023," it said.
The figures are for the first seven months of this fiscal compared to the year-ago period.
ICRA said it expects the awarding activity to contract over 30 per cent YoY (Year-on-Year) in FY2024.
Giving more insights, ICRA VP & Co-Group Head Ashish Modani said almost 95 per cent of the road awards by the Ministry of Roads and Transport and Highways (MoRTH) in the last five years were awarded through the hybrid annuity mode (HAM) and the engineering, procurement and construction (EPC) route, wherein the entire funding burden lay on the ministry.
"The burden on MORTH in case of BOT (Toll) projects is much lower, given the substantial cost escalation in the BMP and consequent increase in funding requirement," he said, adding that the MORTH has thus shifted its focus on to BOT (Toll) projects.
ICRA said while the average number of bidders for the EPC and the HAM projects stood at 15 and 8, respectively, in the case of BOT (Toll), it remained below 5.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
05:08 PM IST