Nitin Gadkari Gets Thumbs Up On NHAI Reforms As High-Risk Projects Decline


Nitin Gadkari Gets Thumbs Up On NHAI Reforms As High-Risk Projects Decline

The proportion of under-construction, high-risk highway projects has reduced significantly from 53% two years ago to just 21% at present, following a number of steps by the National Highways Authority of India (NHAI), a Crisil report has said. The steps taken include significantly shorter time-lines for right-of-way (RoW) and approvals, loan support for languishing projects, termination of stuck projects and their subsequent re-awarding, and affording a change in sponsor. In a report released on Wednesday, ratings and research agency Crisil said only 2,000 km of the 9,400 km of highway projects under construction awarded by NHAI on a build-operate-transfer (BOT) basis, are at high risk. In the operational BOT portfolio, too, approvals for change in sponsor and subsequent refinancing, along with traffic growth, have yielded results, Crisil said. According to Sachin Gupta, senior director, Crisil Ratings, about 80% of the operational portfolio comprising nearly 100 BOT projects are at low risk today in terms of debt servicing. Read More…

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