The National Highways Authority of India (NHAI) awarded contracts to road construction companies at a blistering pace, in the process of creating a new record for the Financial Year (FY) 2017-18. As per the report by IIFL management Ltd., India’s largest money manager for the rich by assets, the bestowment of orders may cross the figure of Rs 1 trillion in the next 12 months. According to this report, the breakneck pace of these order flows will continue in this FY (18-19).
The main focus of the NHAI currently is on our Honourable Prime Minister Narendra Modi’s ambitious Bharatmala plan. This initiative will see the construction of highways in various states with a prime focus on far-flung border and rural areas.
The long process of handing out contracts didn’t gather pace until the December month of 2017, due to delays in land acquisition and the roll-out of a nationwide sales tax. One of the market leaders in the road development sector of India, DilipBuildcon (DBL), has been awarded the most number of projects tendered this quarter, with the overall worth touching the mark of Rs 107 billion. On March 29, DBL released an official statement stating that the company had won a road contract worth Rs 10.04 billion from the National Highways Authority of India (NHAI) in Madhya Pradesh. Their project will involve construction on the Bypass of RewaSidhi Section of NH 75E in Madhya Pradesh on a build, operate and transfer mode. The construction period of this mega project is estimated to be 18 months. They have been assigned three hybrid annuity projects valued at Rs 32.73 billion in Maharashtra. As a result of which, the Bombay Stock Exchange (BSE) value of DBL rose by 12% to Rs 1,122. This is the company’s new high on the BSE.
DBL’s one of a kind operational structure has played a major part in achieving this feat. The organisation has a presence in 13 different of the country, which places it a notch above its competitors in the pecking order of contract offerings. As the FY 18-19 gathers pace, the coming months should provide us further clarity on the future endeavours of the NHAI.