Highway construction in Q1 up 25% on year

By: |
July 14, 2021 9:14 AM

However, the pace of construction in the first three months of the current fiscal was far behind the record high of 36.4 km/day achieved in the entire 2020-21 fiscal.

During the April-June period of the current fiscal, project awards also marginally increased to 1,681 km from 1,658 km in the same period last fiscal. In the same period of 2019-20, only 743 km project length was awarded.During the April-June period of the current fiscal, project awards also marginally increased to 1,681 km from 1,658 km in the same period last fiscal. In the same period of 2019-20, only 743 km project length was awarded.

Despite Covid-induced lockdowns and restrictions on mobility in large part of the country, highway construction grew by a fourth annually in the first quarter of the current financial year to 2,284 km (25.37 km/day). The pace of construction recorded in the first three months of the current fiscal was even higher than in the pre-Covid period. In the April-June period of 2019-20, highway construction was 23.29 km/day.

However, the pace of construction in the first three months of the current fiscal was far behind the record high of 36.4 km/day achieved in the entire 2020-21 fiscal.

Analysts attribute the record construction last fiscal to a slew of industry-friendly measures that the government had proactively taken during the pandemic year, including those to ensure better cash flow to the contractors.

“During second wave of Covid-19, the construction activity was permitted by the state governments. At the same time, MoRTH also supported the contractors by releasing payments proactively. That’s why the execution pace was not affected. At this pace, the execution could surpass 40 km/ day in FY22,” said Icra’s Rajeshwar Burla.

The second wave of Covid-19 pandemic hit the country from the beginning of April. The pace of highway construction generally reaches its peak after the festive season.

During the April-June period of the current fiscal, project awards also marginally increased to 1,681 km from 1,658 km in the same period last fiscal. In the same period of 2019-20, only 743 km project length was awarded.

The country’s overall national highway length increased by 50% from 91,287 km, as of April 2014 to 1,37,625 km, as on 20 March 2021, the road ministry said. Average annual project award during FY15 to FY21 increased by 85% compared to FY10 to FY14. During 2020-21, 10,467 km highway project was awarded, up from 8,948 km a year earlier.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Commuting between Mumbai-Thane to get better! New stretch of Kopri Bridge likely to open soon
2Meerut-Prayagraj Ganga Expressway: Yogi govt to seek Rs 4,480 crore loan
3Despite Covid crisis, India records highest-ever construction speed of National Highways; details