crisil: National road construction is expected to be about 32-34 km/day this fiscal year: Crisil

Construction of the national highway in New Delhi, India, is expected to reach just 32-34 km per day in the current fiscal year as input prices are expected to remain high, the rating agency said on Monday. The rating agency said it expects the pace of highway construction to pick up after the monsoon.

India’s construction of national roads slowed to 28.64 km per day in 2021-2022 due to disruptions related to the COVID-19 pandemic and a longer-than-usual monsoon in some parts of the country.

The pace of National Highway (NH) construction in the country had hit a record in 2020-21 at 37 km per day.

Crisil said National Highway projects took a hit in the first quarter of this fiscal year, with Ministry of Roads Transport and Highways (MoRTH) awarding, including the National Highways Authority of India (NHAI), falling 42 percent. year on 969 km.

Construction activity also slowed 14 percent year-on-year to 1,966 km, or 22 km per day, as a surge in input prices caused developers to delay sourcing materials, she added.

Against this backdrop, according to the report, procurement would need to expand significantly over the next nine months to meet the ministry’s ambitious target of building 50 km per day.

However, the outlook remains positive, it said, adding that project awards peaked at 12,731km last year.

Crisil said it estimates the ministry will contract 12,000-13,000km of national road projects this fiscal year, mostly under Bharatmala, with uptake being driven by developer-friendly measures under Atmanirbhar Bharat, which have been extended to October 2022.

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