NHAI awards projects worth over Rs 31,000 cr during Apr-Aug of FY21; highest in 3 years

The National Highways Authority of India (NHAI) on Monday said it has awarded projects worth Rs 31,000 crore in the first five months of the current fiscal year, despite challenges posed by the COVID-19 pandemic. A total of 26 projects for building 744 km length of highways were awarded during the April-August period of this fiscal, the NHAI said in a statement.

Despite challenges due to the outbreak of the novel coronavirus pandemic, the NHAI has awarded highest length of projects during FY 2020-21 till date as compared to the projects awarded during same period in last three years.

"During April to August 2020, the NHAI has awarded 26 projects of 744 km length as compared to 676 km in FY 2019-20, 368 km in FY-2018-19 and 504 km in FY 2017-18," it said in a statement.

Capital cost of these 26 projects is over Rs 31,000 crore, which includes cost of civil construction, land acquisition and other pre-construction activities, it said.

The NHAI said it has set a target of awarding 4,500 km of highway projects during the current fiscal and is likely to exceed the same.

"Despite lockdown and prevailing situation, the NHAI took various initiatives to instil confidence in the bidders of the sector. To ease liquidity crunch and ensure cash flow to contractors, NHAI ensured that no payments are delayed due to closure of office and disbursed Rs 10,000 crore during lockdown in March 2020 using digital platforms," the statement said.

In the first quarter of the current fiscal, the NHAI said it has disbursed more than Rs 15,000 crore to the vendors.

Additionally, steps such as monthly payments to the contractors were taken and such moderations saw an encouraged participation from the bidders resulting in spiralling effect on the growth of the road sector.

With the increase in awards and expanding highway construction, the NHAI has got a good beginning for a year marred by the global outbreak of the pandemic, the statement said.

The NHAI is committed to develop the national highways infrastructure at a rapid pace and envisions to provide safe, smooth and seamless travel experience on national highways, it added.