Even as the upcoming general elections in 2019 are expected to affect the length of road projects awarded by the government, construction of projects already awarded is expected to gather pace.
Even as the upcoming general elections in 2019 are expected to affect the length of road projects awarded by the government, construction of projects already awarded is expected to gather pace. According to research and ratings agency Icra, a strong pipeline yet to be executed and a concerted effort on securing right of way (ROW) put the National Highways Authority of India (NHAI) on a strong footing. “We expect to witness sustained growth in execution in 2019,” Icra said in a statement.
It added that while project-awarding activity usually picks up substantially during the fourth quarter, considering the general elections in 2019, new award activity is likely to get affected in the final quarter this fiscal as well as in the first quarter next year.
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It said a significant pipeline of road projects to be awarded under the new Bharatmala Pariyojana in the next three years is likely to boost order books of medium-large developers. Icra believes that together with the NHAI’s focus on securing ROW and speeding up of land acquisition, there would be lesser delays in project execution in the future, resulting in reduced idling of resources, thereby resulting in improved operating margins for road-construction companies.